Qualcomm dips as Apple concerns outweigh strong earnings
Shares of computer hardware maker Qualcomm (NASDAQ: QCOM) dipped slightly on Thursday, a day after it reported fiscal-second-quarter earnings that beat forecasts.
The chipmaker, a major supplier to Samsung, Apple, and other mobile-phone manufacturers, reported an adjusted quarterly profit of $1.34 per share, 15 cents above Reuters' consensus estimates. The chipmaker, which reported results on Wednesday, also saw its revenue top estimates.
Qualcomm's stock briefly rose about 2 percent in early trading despite a conservative outlook and potential turbulence over payments owed from Apple (NASDAQ: AAPL). But shares pared earlier gains after a slew of analysts lowered their June estimates; the stock held about 1 percent lower in mid-morning trade.
Qualcomm shares closed fairly flat on Thursday at $52.66 per share.
In a statement, Qualcomm said manufacturers under contract with Apple "reported, but underpaid" royalties during the quarter. The dispute did not affect Qualcomm's earnings this quarter, although the company warned of weaker results if the dispute continues into the next quarter. The company supplies chipsets and technology to Apple and other major original equipment manufacturers.
Qualcomm, which pioneered major cell phone technologies, counts Samsung and Apple as their biggest customers and holds a large portfolio of intellectual property. The company also has license agreements with top Chinese phone manufacturers.
In October last year, the company announced it would buy Dutch rival NXP Semiconductors (NASDAQ: NXPI) for an estimated $38 billion. Qualcomm expects the deal to close by the end of 2017.
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