NEW YORK (TheStreet) -- Shares of Qualcomm(QCOM) - Get Report were falling 2.9% to $58.50 after-hours Wednesday after the chipmaker missed analysts' estimates for earnings in the fourth quarter of fiscal 2015.
Qualcomm reported earnings of 67 cents a share for the fiscal fourth quarter, below analysts' estimates of 86 cents a share for the quarter. Revenue fell 18% year over year to $5.5 billion for the quarter, above analysts' estimates of $5.21 billion.
"Our fiscal fourth quarter revenues and EPS were at the high end of our expectations, with stronger-than-expected MSM chipset shipments offsetting slower than expected progress concluding new license agreements in China," CEO Steve Mollenkopf said in a statement. "We executed a major increase in our capital return program in fiscal 2015, returning a record $14 billion of capital to stockholders."
Mollenkopf continued, "We are encouraged by customer reaction to our flagship Snapdragon 820, are on track to deliver on our fiscal 2016 cost reduction targets and expect to exit fiscal 2016 on an improving financial trajectory."
The company said it shipped 203 million MSM chips in the fiscal fourth quarter, down from 236 million in the year-ago quarter. Total reported devices sales totaled $58.3 billion in the quarter, up from $57.4 billion.
Qualcomm expects to report earnings of 80 cents to 90 cents a share and revenue of $5.2 billion to $6 billion for the first quarter of fiscal 2016. Analysts expect the company to report earnings of $1.08 a share and revenue of $5.79 billion for the quarter.
TheStreet Ratings team rates QUALCOMM INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
We rate QUALCOMM INC (QCOM) a HOLD. The primary factors that have impacted our rating 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 largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: QCOM
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