Qualcomm Falls Despite Earnings Results Beating Estimates

Qualcomm Inc. beat expectations with its quarterly earnings report Wednesday, but shares fell as the company projected profit in the current quarter to be lower than analysts' forecasts. The mobile-focused chipmaker reported fiscal second-quarter earnings of $1.2 billion, or 78 cents a share, on sales of $5.6 billion; after adjustments for share-based compensation and other factors, Qualcomm reported profit of $1.04 a share on sales of $5.5 billion. Analysts surveyed by FactSet expected on average for Qualcomm to report adjusted profit of 97 cents a share on sales of $5.34 billion. For the current quarter, the San Diego company projected earnings of 90 cents to $1 a share on sales of $5.2 billion to $6 billion; analysts on average expect profit of $1.02 a share on sales of $5.5 billion, according to FactSet. The company also revealed that it had settled a licensing dispute with LG Electronics Inc. Qualcomm shares declined as much as 3% in immediate late trading after results were announced Wednesday.