Qualcomm Q4 Profit Down, Outlook Weak; Shares Slip

(RTTNews) - Qualcomm Inc. (QCOM) Wednesday reported a 44 percent drop in profit for the fourth quarter, hurt by a significant decline in revenues. Quarterly earnings topped Wall Street estimates, as did sales.

However, shares of the mobile chip maker slipped over 6 percent in extended session after it detailed a weak outlook for the current quarter reflecting the sluggish demand for its chips.

For the first quarter, Qualcomm expects earnings of $0.80 to $0.90 per share and revenues of $5.2 billion to $6 billion. Analysts polled by Thomson Reuters currently estimates earnings of $1.08 per share on revenues of $5.79 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," said CEO Steve Mollenkopf.

Qualcomm has been beset by problems in its chip making business, including intense competition, and probes by authorities in the U.S., Europe and South Korea.

Qualcomm's fourth-quarter profit dropped to $1.06 billion or $0.67 per share from $1.89 billion or $1.11 per share last year.

Adjusted earnings for the quarter declined to $0.91 per share from $1.26 per share last year. Analysts expected earnings of $0.86 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter fell 18 percent to $5.46 billion from $6.69 billion last year. Analysts had a consensus revenue estimate of $5.21 billion for the quarter.

The company said it will no longer issue annual revenue and earnings guidance, as it aligns its practices more closely with its semiconductor and large technology sector peers.

QCOM closed Wednesday's trading at $60.26, down $0.61 or 1.00%, on the Nasdaq. The stock further dropped $3.76 or 6.24% in the after-hours trade.