Bloomberg News
Qualcomm Inc. shares rose in the extended session Wednesday after the chipmaker’s quarterly results topped Wall Street estimates but were held in check by a less-than-stellar guidance.
Qualcomm shares rose 1.3% after hours, following a 0.4% decline to close at $49.75 in the regular session. At Wednesday’s close, Qualcomm shares are down 22% for the year to date, compared with a 0.9% decline in the PHLX Semiconductor Index and a 1.3% decline in the S&P 500 index .
The company reported fiscal second-quarter net income of $363 million, or 24 cents a share, compared with $749 million, or 50 cents a share, in the year-ago period.
Excluding restructuring charges and a revenue reduction from an arbitration decision with Blackberry Ltd. , adjusted earnings were 80 cents a share. Analysts surveyed by FactSet expected 70 cents a share, while Qualcomm had forecast 65 cents to 75 cents a share. Estimize, a software platform that uses crowdsourcing from hedge-fund executives, brokerages, buy-side analysts and others, had expected earnings of 75 cents a share.
Revenue rose to $5.26 billion from $5.02 billion in the year-ago period, while Wall Street had forecast $5.19 billion and Qualcomm had predicted revenue of $4.8 billion to $5.6 billion. Estimize had expected revenue of $5.28 billion.
For the third quarter, Qualcomm estimates adjusted earnings of 65 cents to 75 cents a share on revenue of $4.8 billion to $5.6 billion, while analysts expect earnings of 75 cents a share on revenue of $5.28 billion.
Qualcomm said neither its results nor its outlook included disputed licensing revenue from vendors such as Apple Inc. or its proposed purchase of NXP Semiconductors NV . Qualcomm is finding Chinese regulators hesitant to approve its takeover of NXP, prompting the two companies to push out the end date of their purchase agreement until July 25 from April 25.