Wireless chipmaker QUALCOMM, Inc. (QCOM) late Wednesday posted better-than-expected fiscal second quarter earnings, but its tepid third quarter and full-year forecast sent its shares lower in aftermarket trading.
The San Diego-based company reported fiscal second quarter net income of $2.23 billion, or $1.28 per share, compared with $999 million, or 59 cents per share, in the year-ago period. Excluding special items, adjusted profit was $1.01 per share.
Revenue jumped 28% from last year to $4.94 billion.
On average, Wall Street analysts expected a smaller profit of 96 cents per share, on lower revenue of $4.84 billion.
Looking ahead, QCOM forecast third quarter adjusted earnings of 83 to 89 cents per share, which would miss analysts’ outlook for 90 cents. For the full year, the company said it expects adjusted earnings of $3.61 to $3.76 per share, which would also miss Wall Street’s expectation of $3.77 per share.
QUALCOMM shares are posting sharp losses in aftermarket trading Wednesday, down around 4%.
The Bottom Line
Shares of Qualcomm (QCOM) have a 1.49% dividend yield, based on today’s closing stock price of $66.99. The stock has technical support in the $61-$63 price area. If the shares can firm up, we see overhead resistance around the $70-$71 price levels.
QUALCOMM, Inc. (QCOM) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.