The 10-second takeaway
For the quarter ended Dec. 30 (Q1), QUALCOMM beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Margins expanded across the board.
QUALCOMM booked revenue of $6.02 billion. The 36 analysts polled by S&P Capital IQ hoped for a top line of $5.90 billion on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $4.68 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.26. The 34 earnings estimates compiled by S&P Capital IQ averaged $1.12 per share. GAAP EPS of $1.09 for Q1 were 35% higher than the prior-year quarter's $0.81 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 62.8%, 30 basis points better than the prior-year quarter. Operating margin was 34.7%, 160 basis points better than the prior-year quarter. Net margin was 31.7%, 180 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $5.89 billion. On the bottom line, the average EPS estimate is $1.10.
Next year's average estimate for revenue is $23.56 billion. The average EPS estimate is $4.32.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,483 members out of 2,627 rating the stock outperform, and 144 members rating it underperform. Among 553 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 534 give QUALCOMM a green thumbs-up, and 19 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on QUALCOMM is outperform, with an average price target of $73.01.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Qualcomm. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.