Qualcomm sees 28-nm capacity crunch through 2012
7/18/2012 6:08 PM EDT
Sequential sales slip, guidance trimmed
Qualcomm reported sales of $4.63 billion for the quarter, down 6 percent from the previous quarter and up 28 percent compared with the year-ago quarter. Sales for the quarter were roughly at the mid-point of Qualcomm's guided target of between $4.45 billion and $4.85 billion, but fell short of consensus analysts' expectations of about $4.68 billion, according to Yahoo Finance.
Net income for the quarter was $1.21 billion, Qualcomm said, down 46 percent from the previous quarter and up 17 percent from the year-ago quarter. The company reported earnings per diluted share for the quarter of 69 cents, down 46 percent from the previous quarter and up 13 percent from the year-ago quarter.
On a pro-forma basis, excluding charges, Qualcomm reported a net income of $1.49 billion, down 16 percent from the previous quarter and up 20 percent from the year-ago quarter. The company reported pro forma earnings per share of 85 cents, down 16 percent from the previous quarter and up 16 percent from the year-ago quarter.
Pro forma earnings per share came up just short of consensus analysts' expectations of 86 cents, according to Yahoo Finance.
Qualcomm said it expects sales for the current quarter, which closes in September, to be between $4.45 billion and $4.85 billion, which would represent an increase of 8 to 18 percent compared to the same period of 2011. Guidance for the current quarter fell short of consensus analysts' expectations of about $4.9 billion, according to Yahoo Finance.
Qualcomm also trimmed the high end of its sales target for the fiscal year, which also closes in September. The company said it now expects sales for the year to be between $18.7 billion and $19.1 billion, down from a previously guided range of $18.7 billion to $19.7 billion. The new guidance would represent an improvement of 25 to 28 percent compared to fiscal 2011 sales of $14.96 billion.
Ian Ing, an analyst with Lazard Capital Markets LLC, said in a report circulated Thursday that Qualcomm's disappointing guidance for the current quarter will be largely a replay of what happened in calendar 2011, when a "air pocket" emerged in fall ahead of strong sales to close the calendar year.
Ing maintained Lazard's "buy" rating on Qualcomm shares and increased its price target for the stock to $75 from $74. Qualcomm's stock traded at $56.67 Thursday morning, up nearly 3 percent from Wednesday's close.