Thursday, November 8, 2012

Qualcomm beats expectations


Qualcomm Inc. released its fourth quarter statements on November 7th.  The company’s fiscal fourth quarter ended September 30 and reported a profit growth of $1.27 billion, or 73 cents a share from $1.06 billion, or 62 cents a year. The reason for Qualcomm Inc.’s 20 percent profit growth was due to a rise in demand for chips in smartphones. Qualcomm also reported a revenues growth of 18% year-over-year to $4.87 billion. Net income was reported at $1.24 billion, up 20% year over year.  The operation income was reported at $1.24 billion, down 11% year over year.
The chairman and CEO of Qualcomm, Dr. Paul E. Jacobs released his statement saying ““I am very pleased with our performance this year. We delivered record revenues, earnings and MSM chipset shipments driven by increasing global consumption of wireless data across a diverse range of devices, particularly smartphones, As we continue to invest in and execute on our strategic priorities, our broad licensing program and industry-leading Snapdragon and 3G/LTE chipset roadmap position us for double-digit revenue growth again in fiscal 2013.”

The fiscal revenues of 2012 were reported at $19.12 billion as a 28% increase and the net income was reported at $6.11 billion as a 13% increase. The Diluted earnings per share were reported up 39% to $3.51 per share. The return of capital to stockholders were reported at $6 billion, up 22%, and consisted of 31% of revenues.

For the first quarter of the 2013 fiscal year the company expects an adjusted per-share profit of $1.08 to $1.16, with revenue of $5.6 billion to $6.1 billion.  The company estimates for the fiscal year of 2013 that revenues will increase from  the fiscal year results of 2012 of $19.12 billion to anywhere between $23 billion to $24 billion. They also expect that GAAP operating income will increase 16-25% for the fiscal year of 2013. The earnings per-shares expectations are between $4.12 to $4.32 a share for the upcoming fiscal year.
Shares jumped 7.7% after-hours to $62.60 after the company released its earnings and expectations. The stock is up 6.3% so far this year.

-Kristen Pfaffe, Junior analyst

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