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Earnings Review and Free Research Report: Qualcomm Beat Analysts' Estimates in Q3 Earnings

Research Desk Line-up: TESSCO Technologies Post Earnings Coverage

MAIN, GERMANY / ACCESSWIRE / July 24, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on QUALCOMM Inc. (QCOM), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=QCOM, following the Company's July 19, 2017, announcement of its fiscal third quarter ended June 25, 2017. Qualcomm's results beat analysts' expectations in terms of EPS as well as revenue. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Communication Equipment industry. Pro-TD has currently selected TESSCO Technologies Incorporated (NASDAQ: TESS) for due-diligence and potential coverage as the Company reported on July 18, 2017, its financial results for Q1 FY18 which ended on June 25, 2017. Register for a free membership today, and be among the early birds that get access to our report on TESSCO Technologies when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on QCOM; also brushing on TESS. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

For Q3 FY17, Qualcomm reported GAAP revenues of $5.4 billion compared to revenue of $6.0 billion in Q3 FY16, reflecting an 11% decrease in revenues. However, on a sequential basis, the Company's revenues increased by 7 % whereas revenue was $5.0 billion in Q2 FY17. Qualcomm's operating income fell by 51.4 % y-o-y, down to $773 million in Q3 FY17 from $1.59 billion in Q3 FY16. In terms of q-o-q, operating income increased by 6% from $0.7 billion.

For Q3 FY17, Qualcomm reported a gross margin of 58.8 % and noted a profit margin of 19.20% of total revenues. The Company's adjusted EBITDA was $1.24 billion in Q3 2017, representing a 36.1% drop on a y-o-y basis.

Qualcomm reported net income of $866 million, or $0.58 per share, for Q3 FY17 compared to net income of $1.4 billion, or $0;97 per share, in Q3 FY16. On an adjusted basis, the Company's earnings totaled $0.83 per share. Analysts expected an EPS of $0.81 per share and revenue of $5.26 billion.

Segment Analysis

During Q3 FY17, Qualcomm CDMA Technologies (QCT) segment clocked $4.1 billion in revenues with a 14% EBT margin. The Company made 187 million MSM shipments in the reported quarter. The strong performance in QCT segment was primarily driven by a favorable mobile product mix. There was an increase of 30% y-o-y in QCT's revenues from adjacent opportunities. The segment reported its 5th consecutive quarter of y-o-y EBT growth.

For Q3 FY17, The Qualcomm Technology Licensing (QTL) segment saw $1.2 billion in revenues and 73% EBT margin. The non-payment of royalties by Apple's contract manufacturers and the previously disclosed dispute with another licensee negatively impacted QTL's results. The Company expects that unless the disputes are resolved, the licensees will continue to take such actions in the future. Therefore, Qualcomm noted that measuring QTL's business on the basis of total reported device sales and related estimated ranges of device shipments and average selling prices would be not meaningful. Hence, the company refrained from providing any such metrics for fiscal Q3 and for the guidance on fiscal Q4 2017.

Cash Matters

Qualcomm generated GAAP operating cash flow of $100 million in Q3 FY17 which was lower compared to the previous quarter on account of payments made to the Blackberry arbitration and KFTC fine. On the other hand, the Company's non-GAAP operating cash flow totaled $2.0 billion, or 39% of non-GAAP revenues, which does not include impact of the above payments.

Forward Looking Statement

For Q4 FY17, Qualcomm is expecting revenue in the range of $5.4 billion-$6.2 billion; GAAP diluted EPS of $0.55-$0.65; and non-GAAP diluted EPS of $0.75-$0.85. The Company's financial guidance excludes QTL's revenues that are related to sale of Apple products by Apple's contract manufacturers and the other licensee who are in dispute with Qualcomm.

Stock Performance

QUALCOMM's share price finished last Friday's trading session at $53.84, slightly down 0.24%. A total volume of 12.08 million shares have exchanged hands, which was higher than the 3-month average volume of 10.25 million shares. The Company's stock price advanced 2.55% in the last three months. Shares of the Company have a PE ratio of 17.91 and have a dividend yield of 4.23%. The stock currently has a market cap of $79.52 billion.

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SOURCE: Pro-Trader Daily