Qualcomm Posts 3Q Miss, Cuts Full-Year View

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Published July 18, 2012

| FOXBusiness

Qualcomm Inc. (QCOM) saw strong fiscal third-quarter top-line growth of 28%, and profit that increased 17%, but the chip-maker “moderated” its full-year view, lowering the top-end of its forecast for both revenue and adjusted earnings per share.

"Adoption of 3G and 3G/4G technologies continues around the world, driving strong year-over-year growth in our chipset and licensing businesses this quarter," said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm in a statement. "Looking forward, our growth estimates for 3G/4G device shipments in calendar 2012 have moderated slightly, and we now expect the demand profile of the calendar year to be more back-end loaded as new devices are launched for the holiday season.”

The company forecast fourth-quarter revenue between $4.45 and $4.85 billion, and adjusted earnings in the range of 78 cents to 84 cents a share.  The company lowered the top end of its full-year guidance; Qualcomm now expects revenue between $18.7 billion and $19.1 billion, with adjusted earnings in the range of $3.61 and $3.67 a share.  The Street was expecting full-year earnings of $3.74 a share on revenue of $19.2 billion.

Supply issues related to limited manufacturing capabilities from Taiwan Semiconductor Manufacturing Co. (TSMC) have hampered revenue growth in the company’s semiconductor business. In a conference call following the release, Jacobs admitted that shortages of the company’s popular Snapdragon processors have limited the potential revenue upside for the current fiscal year, according to reports.

For the fiscal third quarter, the chip-maker posted profit of $1.21 billion, or 69 cents a share, compared with earnings of $1.04 billion, or 61 cents a share, last year.  On an adjusted basis, earnings rose to 85 cents a share, up from 73 cents, one year ago.

Revenue rose 28% during the quarter to $4.63 billion, compared with $3.62 billion.

The results came in slightly lower than expected, as analysts polled by Thomson Reuters had projected earnings of 86 cents on revenue of $4.68 billion.

Shares of Qualcomm rose $1.59, or 2.92%, in the regular session on Wednesday.  The stock was up another 6% in after-hours trading.

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