The 10-second takeaway
For the quarter ended March 31 (Q2), QUALCOMM met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share expanded significantly. GAAP earnings per share dropped significantly.
Margins contracted across the board.
QUALCOMM booked revenue of $6.12 billion. The 36 analysts polled by S&P Capital IQ expected revenue of $6.08 billion on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $4.94 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 $1.17. The 38 earnings estimates compiled by S&P Capital IQ predicted $1.17 per share. Non-GAAP EPS of $1.17 for Q2 were 16% higher than the prior-year quarter's $1.01 per share. (The prior-year quarter included $0.44 per share in earnings from discontinued operations.) GAAP EPS of $1.06 for Q2 were 17% lower than the prior-year quarter's $1.28 per share. (The prior-year quarter included $0.44 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 61.3%, 260 basis points worse than the prior-year quarter. Operating margin was 30.6%, 40 basis points worse than the prior-year quarter. Net margin was 30.5%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $5.90 billion. On the bottom line, the average EPS estimate is $1.03.
Next year's average estimate for revenue is $24.13 billion. The average EPS estimate is $4.52.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,570 members out of 2,711 rating the stock outperform, and 141 members rating it underperform. Among 527 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 508 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 $74.77.
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