Qualcomm Tops Earnings Estimates, Expects Strong June Quarter

Qualcomm topped earnings and revenue estimates in CEO Steve Mollenkopf's last quarterly report with the company.
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Shares of Qualcomm Inc.  (QCOM) - Get Report rose Wednesday after the company reported fiscal second-quarter results that topped analyst estimates. 

The San Diego chipmaker reported earnings of $1.90 per share on revenue of $7.93 billion, a 52% year-over-year increase. Analysts were expecting earnings of $1.67 per share on revenue of $7.62 billion, according to FactSet. 

"Demonstrating the strength of our strategy and our success in execution, we delivered another quarter of year-over-year growth driven by sustained demand for smartphones globally and our ability to increase the scale of our non-handset revenues,” said CEO Steve Mollenkopf.

The company more than doubled its net income from a year ago to $2.19 billion in the quarter. 

Qualcomm shares were up 5.5% to $144.01 after hours Wednesday. 

The company's mobile communications business segment saw a 137% increase year-over-year in earnings before taxes. 

For the fiscal third quarter, which ends in June, the company expects earnings between $1.55 and $1.75 per share on revenue between $7.1 billion and $7.9 billion. 

Analysts are expecting earnings of $1.52 per share on revenue of $7.12 billion. 

“Looking ahead, Qualcomm is well positioned for continued growth, and we remain confident in our ability to execute on the many opportunities in front of us," said Mollenkopf, who is scheduled to step down as CEO at the end of June. Qualcomm's President Cristiano Amon will be taking over for Mollenkopf. 

"I am extremely honored and proud to have led Qualcomm for the past seven years and am confident in the Company’s ability to extend its position as a leader in wireless technologies under Cristiano’s leadership," Mollenkopf said.

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