Earnings: Qualcomm’s Stock Falls 4 Percent On Next Quarter’s Outlook
Forget about how Qualcomm (NSDQ: QCOM) performed in the third quarter, investors were already lamenting the wireless chip company’s fourth-quarter outlook, sending the company’s shares down 4 percent in after-hours trading. Release.
Reuters reports that the company, which also posted a small drop in Q3 profit on fairly flat revenues, is expecting Q4 revenue of $2.55 billion to $2.75 billion, compared with analysts’ average estimate for $2.72 billion according to Reuters Estimates. Meanwhile, the company’s Q3 performance was close to expectations. When comparing pro forma results of 54 cents per share, the company was just shy of the 55 cents analysts were expecting. Pro forma results excludes 2 cents a share attributable to the QSI segment, which primarily includes its FLO TV division, and 8 cents for share-based compensation.
| 3Q 2009 | 3Q 2008 | Analysts Estimates For 3Q 2009 | |
|---|---|---|---|
| EPS | $0.44 | $0.45 | $0.51 |
| Net Income | $737 million | $748 million | |
| Revenue | $2.75 billion | $2.76 billion | $2.74 billion |
Q3 vs. Q4: In the third quarter, Qualcomm saw strong growth as people upgraded to 3G-enabled products with revenues at the high end of guidance and operating income exceeding guidance. Going forward, the company anticipates another strong quarter for its chipset shipments in Q4. The company raised fiscal 2009 revenue and operating income estimates. But analysts were concerned that Qualcomm was facing weaker demand in China, Reuters reported.
FLO TV results: The company does not break out FLO TV results separately, but it does report results for the QSI segment, which mainly consists of the FLO TV subsidiary. QSI reported a two cent a share loss and operating expenses of $86 million for the third quarter. The company said the QSI unit recorded $9 million in revenues, which represents a 125 percent increase over the year-ago period.
