Qualcomm (QCOM) 'Set a Strategy and We're Executing,' CEO Mollenkopf Tells CNBC
NEW YORK (TheStreet) -- Shares of Qualcomm (QCOM) - Get Report are higher by 7.79% to $60.17 on Thursday afternoon, after the company reported better than expected earnings for the 2016 second quarter on Wednesday.
The company posted adjusted earnings of $1.16 per share, topping analysts' forecasts of 97 cents per share. Revenues rose by 4% year over year to $6 billion and was higher than Wall Street's expectations of $5.8 billion.
Qualcomm CEO Steve Mollenkopf joined CNBC's "Squawk Alley" today to discuss the company's earnings, continued growth and success in China, and the current technological landscape.
"We set a strategy a year ago and we're executing and delivering based off of it, and we're happy to see that being recognized in the market. We feel we are in the early innings of where we're going to take the company," Mollenkopf said.
One of the biggest hurdles that Qualcomm faced was integration into the Chinese market. Several restrictions by Chinese phone makers created headwinds for the company's growth in the country. However, with opposition laxed in the region and with China paying more licensing fees to Qualcomm, the company has increased market share there, Bloomberg reports.
"I think the key piece is that the underlying technology migrate to LTE has been the engine that's really driving the importance of getting China in a good spot for us as a business. Our product strength has been strong the last two years there, and strong again this quarter," Mollenkopf explained.
China will continue to be an important component of the growth story for Qualcomm moving forward and the CEO says he likes what he's seeing in terms of market drivers in China.
Finally, Mollenkopf commented on the merger between SoftBank (SFTBF) and ARM, and what potential implications the merger could have on Qualcomm.
"We have a strong relationship with both, I think what you're seeing is a strategy that is very much aligned with our company. The important component of being successful in the Internet of things is not just the processor but also connectivity, we like going at that opportunity. We think ARM and SoftBank will be good partners as we go along that journey," Mollenkopf said.
(Qualcomm is held in David Peltier's Dividend Stock Advisor portfolio. See all of his holdings with a free trial.)
Separately, TheStreet Ratings rates Qualcomm as a "Hold" with a ratings score of "C+." The primary factors that have impacted TheStreet Ratings are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, TheStreet Ratings finds that the stock has had a generally disappointing performance in the past year.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: QCOM