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QUALCOMM Fourth Quarter Earnings
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QCOM
QUALCOMM Incorporated (Nasdaq:QCOM) announced its results for the most recent quarter on November 7, 2012. Qualcomm designs and manufactures digital wireless telecommunications products and services based on its CDMA technology and other technologies.
Investors care about earnings because they drive stock prices. Strong earnings generally result in the stock price moving up and vice versa. SEE: Surprising Earnings Results
The Numbers: QUALCOMM beat expectations with its latest EPS and revenue figures. The company reported adjusted net income of 89 cents per share versus the 70 cents per share estimate and revenues of $4.87 billion versus the $4.68 billion estimate. Revenue climbed 18.3% from the same period last year. QUALCOMM has averaged revenue growth of 30.6% over the past five quarters. The company's net income for the quarter rose 20.4% to $1.27 billion. Last quarter marked the third in a row of rising net income.
A Look Back: Last quarter marked the fifth straight quarter that the company saw shrinking gross margins, as gross margin fell 1.4 percentage points to 62.2% from the year-earlier quarter. Over that time, margins have contracted on average 2.2 percentage points per quarter on a year-over-year basis.
Net income has increased 40.4% year-over-year on average across the last five quarters. The biggest gain came in the second quarter, when income climbed more than twofold from the year-earlier quarter.
Looking Ahead: Analysts appear increasingly negative about the company's results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from 90 cents a share to 89 cents over the last 30 days. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. For the fiscal year, the average estimate has moved up from $3.18 a share to $3.19 over the last 60 days.
Investors care about earnings because they drive stock prices. Strong earnings generally result in the stock price moving up and vice versa. SEE: Surprising Earnings Results
The Numbers: QUALCOMM beat expectations with its latest EPS and revenue figures. The company reported adjusted net income of 89 cents per share versus the 70 cents per share estimate and revenues of $4.87 billion versus the $4.68 billion estimate. Revenue climbed 18.3% from the same period last year. QUALCOMM has averaged revenue growth of 30.6% over the past five quarters. The company's net income for the quarter rose 20.4% to $1.27 billion. Last quarter marked the third in a row of rising net income.
Net income has increased 40.4% year-over-year on average across the last five quarters. The biggest gain came in the second quarter, when income climbed more than twofold from the year-earlier quarter.
Looking Ahead: Analysts appear increasingly negative about the company's results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from 90 cents a share to 89 cents over the last 30 days. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. For the fiscal year, the average estimate has moved up from $3.18 a share to $3.19 over the last 60 days.
by
Investopedia Staff
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