Qualcomm Profit Tops Estimates; To Cut Jobs As Part Of Strategic Realignment

Also, President Derek K. Aberle sold 14,794 shares of the company’s stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $65.28, for a total value of $200,605.44. The disclosure for this sale can be found here.

QCOM has been the subject of a number of other recent research reports. Analysts at Vetr downgraded shares of QUALCOMM from a “strong-buy” rating to a “buy” rating and set a $67.33 price target on the stock in a research note on Tuesday, July 7th. The Wall Street Journal reported reported earlier this week that Qualcomm was considering such a review. The stock now has a consensus rating of “Buy” and a consensus price target of $76.27. The analyst maintained an Outperform rating on Qualcomm stock, without providing a price target. The shares have received a hold rating based on the suggestion from 9 analysts in recommendations. Analysts at Mizuho initiated coverage on shares of QUALCOMM in a research note on Tuesday, July 14th. Of those thirty-four, eighteen have a Buy rating, fourteen have a Hold rating and two have a Sell rating.

QUALCOMM (NASDAQ:QCOM) traded down 1.46% on Wednesday, hitting $64.19. The QCT semiconductor business suffered some of the same pressure that the company’s competitors have seen, with a 22% drop in revenue leading to a decline of almost three-quarters in pre-tax income. The stock has a 50-day moving average of $65.39 and a 200-day moving average of $68.68. The operation will include a $15 billion stock buyback announced in March, with $10 billion set to be repurchased in the next 12 months.

Qualcomm said it also has reached an agreement with Jana to add Mark McLaughlin, chief executive of Palo Alto Network, and Tony Vinciquerra, a senior adviser to TPG, to its board. The company’s net income in the period plunged 47 percent to $1.2 billion. The company had revenue of $5.83 billion for the quarter, compared to the consensus estimate of $5.85 billion. That would be against $1.44 EPS and $6.81 billion in revenue for the same quarter a year ago.

The average estimate among 70 Estimize users was for earnings of $0.98 per share and revenue of $5.82 billion. However, it also said that the company has been reviewing such plans for years, with the main focus being on finding if there are any dis-synergies between the QCT and Qualcomm Technology Licensing (QTL). Using normal accounting methods, the firm earned a slimmer $0.73 per share. The standard deviation reading, which is a measure by which the stock price is expected to swing away from the mean estimate, is at $5.51. The ex-dividend date is Monday, August 31st.

QUALCOMM Incorporated (Qualcomm), is engaged in design, manufacture, have manufactured on its behalf and market digital communications products and services based on code division multiple access (CDMA), Orthogonal Frequency Division Multiplexing (OFDMA) and other technologies.

While most of the company’s revenue comes from chipset sales, around two-thirds of its profit comes from royalties it collects on patents from CDMA, LTE and other technologies used in phones around the world, whether or not they have Qualcomm’s chips inside.