NEW YORK (TheStreet) --Shares of Qualcomm Inc. (QCOM) are lower by 9.46% to $69.90 at the start of trading on Thursday, after the company announced last night that it is dealing with an antitrust investigation that could hurt its business in China next year, and also said it is facing new regulatory investigations in the U.S. and Europe, Reuters reports.
Qualcomm is facing a possible fine of over $1 billion in China as a result of the National Development and Reform Commission investigation. The investigation could result in the smartphone chip maker having to make concessions that could negatively impact its successful business of charging royalties on phones that use its patents, Reuters added.
The European Commission is also looking into the company's rebate and other financial incentives practices in regards to the sale of its chips. The U.S. Federal Trade Commission is looking into a possible licensing terms breach, Reuters noted.
Additionally, Qualcomm announced its fiscal 2014 fourth quarter earnings results and showed a 26% increase in GAAP-net income to $1.89 billion, or $1.11 per diluted share. Revenue for the latest quarter was up 3% year-over-year to $6.69 billion for the quarter.
On a non-GAAP basis net income for the latest quarter increased 18% year-over-year to $2.14 billion, or $1.26 per diluted share.
Separately, TheStreet Ratings team rates QUALCOMM INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate QUALCOMM INC (QCOM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, increase in stock price during the past year and growth in earnings per share. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
You can view the full analysis from the report here: QCOM Ratings ReportQCOM data by YCharts