Qualcomm Reports Earnings For Its 3rd Fiscal Quarter Of 2018

Qualcomm has just reported its earnings for the third fiscal quarter of the year, which ended on June 24. It brought in $5.6 billion in revenue for the quarter, which is a 4-percent change year-over-year and a 6-percent increase sequentially. Operating income was $900 million for the quarter, also up 20-percent year-over-year. And net income was $1.2 billion which is up 46-percent year-over-year.

In its press release today, Qualcomm did also mention NXP Semiconductors, who Qualcomm has been attempting to acquire for almost two years now. The company has until 11:59PM EST tonight to get it approved. But according to the press release, Qualcomm is moving along with the deal not being approved. With the deal not being approved, NXP will be getting a $2 billion termination fee, which Qualcomm will be paying for with existing cash and cash equivalents. However, Qualcomm said that if for some reason, China approves the deal before 11:59PM EST tonight, it will continue to pursue the acquisition. Now in light of the failed acquisition to purchase NXP, Qualcomm will be implementing a $30 billion stock repurchase program for its outstanding common stock. That is nearly triple the amount that Qualcomm announced last quarter in its share buyback program. This is good news for Qualcomm shareholders as the stock price will go up and become more valuable, due to there being less shares available.

Qualcomm did also provide some guidance for its fourth quarter of fiscal year 2017 earnings, and the numbers are more or less flat compared to the previous Q4. With revenue expected to be between $5.1 and $5.9 billion, EPS being between $0.78 and $0.85, and chip shipments being between 200 and 225 million units. That would be a decrease compared to the previous year. These numbers are likely lower due to the fact that the smartphone market has really plateaued in recent years, so many customers aren't upgrading their smartphones as often, which is weighing on Qualcomm's business.

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Alexander Maxham

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Alex has written for Androidheadlines since 2012 as Editor of the site and traveled the World to many of the biggest Smartphone and Technology events. Alex has a background in Technology and IT and Deep Passion for Everything Android and Google. His specialties lay in Smartphones of all budgets, Accessories, Home Automation and more. Contact him at [email protected]
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