Qualcomm Is Real Money's Stock of the Day
The chipmaker posted stronger-than-expected fourth-quarter earnings, and said near term revenues would exceed Wall Street forecasts following its recent licensing agreement with Apple Inc. (AAPL) - Get Apple Inc. Report .
Qualcomm said non-GAAP earnings for the three months ending in September, its fiscal fourth quarter, were pegged at 78 cents per share came in at an adjusted cents 78, down 12.4% from the same period last year but firmly ahead of Wall Street estimates of 71 cents per share. The group's adjusted operating margin, Qualcomm said, was 22.9%, beating expectations of 22.5%. Revenue for the quarter came in at $4.8 billion, against beating analysts expectations of $4.756 billion even as the total fell 17% from last year, reported TheStreet's Martin Baccardax.
Qualcomm said current quarter revenue is likely to rise to between $4.4 billion and $5.2 billion, just ahead of the consensus forecast of $4.82 billion. Qualcomm said the guidance excludes QTL royalty revenue from China-backed handset maker Huawei Technologies. The group also expects non-GAAP adjusted EPS for the quarter of between 80 cents and 90 cents per share, far better than analysts' expectation of 81 cents per share.
U.S.-China Trade War
"We got something concrete out of China at last and it is big: a death sentence for a fentanyl smuggler and life sentences for two colleagues," wrote Jim Cramer in his morning column over on Real Money. "It might seem like small potatoes for some - like some moron twitter people whom I have had to block - but this is precisely what Peter Navarro, the man in charge of trade talks has been calling for as a sign of goodwill."
"Why are there so many doubters of progress in the trade talks? A big one is the on-again-off-again nonsense about when and where an agreement could be signed. The reason why I don't trust it is the mainstream media gets its leaks from either the Communist Chinese - who, somehow are regarded as reliable sources, or from Secretary Mnuchin who is a relative free trader, not a fair trader," he continued."
So the question really is: What's it going to take for investors to trust the American side of the U.S.-China trade war.
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