Qualcomm Swings to Loss on Charges -- Earnings Review

01/31/18 05:55 PM EST
   By Austen Hufford 

Qualcomm Inc. reported results for its fiscal first quarter after the market closed Wednesday. Here's what you need to know:

REVENUE: Revenue in the quarter rose 1.2%, to $6.07 billion, above Wall Street estimates of $5.93 billion.

EARNINGS: The company posted a loss of $6 billion, or $4.03 a share, compared with a profit of $700 million, or 46 cents a share, in the same period in the year prior. On an adjusted basis, which takes out the charges, the company brought in 98 cents a share, above the 91 cents a share analysts polled by Thomson Reuters had expected.

SHARES: In post-market trading, shares fell 0.2%, to $68.11. Shares have risen 34% in the past three months.

TAXES: Qualcomm took a $6 billion charge related to the new U.S. tax law, including $5.3 billion related to the one-time tax on accumulated overseas profits, $562 million from the estimated impact of remeasuring deferred tax assets and $86 million resulting from the company's decision to no longer indefinitely reinvest certain foreign earnings.

FINE: Qualcomm took a $1.2 billion charge for a fine imposed by the European Commission, which claimed that payments made to Apple to entice it to exclusively use Qualcomm chips were anticompetitive.

OUTLOOK: For its current quarter, Qualcomm expects revenue of $4.8 billion to $5.6 billion and adjusted earnings per share of 65 cents to 75 cents. Analysts had expected revenue for the second quarter of $5.58 billion and adjusted earnings per share of 85 cents.

CHIPS: Chip shipments rose 9% in the quarter as chip revenue rose 13%, to $4.65 billion. Qualcomm expects to ship between 1.85 billion and 1.95 billion 3G and 4G devices in 2018, up about 7% from 2017.

NXP: Qualcomm said its proposed deal to buy NXP Semiconductors NV for $39 billion should close in early 2018. The companies originally announced the deal in October 2016.


Write to Austen Hufford at Austen.Hufford@wsj.com


(END) Dow Jones Newswires

January 31, 2018 17:55 ET (22:55 GMT)

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