Qualcomm shares down despite profit
Shares in Qualcomm were still trading lower this morning after the company yesterday beat expectations for its second fiscal quarter and raised earnings guidance for the rest of the year.
For the second quarter, Qualcomm posted a net income of $774 million, compared with a net loss of $289 million in the prior year’s quarter and net income of $841 million in the prior quarter. Revenues totaled $2.66 billion, compared with $2.46 billion in the year-ago quarter and $2.67 billion in the prior quarter.
The company said it expects revenue to be in the range of $2.5 billion to $2.7 billion in the third quarter and adjusted earnings per share in the range of 51 cents to 55 cents; analysts were estimating earnings per share at the high end, or 55 cents per share, for the third fiscal quarter.
The company slightly lowered what it expects for the average selling price (ASP) of devices using its chipsets, with $185 being the midpoint of its range, down about $2 from its previous estimate.
The chip maker said that after an analysis of information from licensee audits and public disclosures on licensee market share, it adjusted some of the assumptions it uses to make estimates on ASPs, which it believes will give investors a better picture of what’s happening.
Shares were down about 6 percent this morning, trading in the $40 range.