Qualcomm closes fiscal 2013 on a mixed note with Q4 earnings report

Summary:The chip maker squashed revenue estimates, but a missed earnings target coupled with a weak outlook ends the fiscal year on a sour note.

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Amid a slow week for tech earnings to begin with, Qualcomm was the only major industry brand to report fiscal Q4 sales figures on Wednesday after the bell.

The chip maker reported a net income of $1.50 billion, or 86 cents per share (statement).

Non-GAAP earnings were $1.05 cents per share on a revenue of $6.48 billion, up 33 percent year-over-year.

Still, Wall Street wanted earnings of at least $1.08 per share on a revenue of $6.34 billion.

Qualcomm shares were down initially by approximately five percent in after-hours trading.

For fiscal 2013 overall, Qualcomm delivered earnings of $4.51 per share along with revenue of $24.87 billion, up 30 percent annually.

Maintaining a focus on the revenue targets, CEO Paul E. Jacobs reflected on the quarter in prepared remarks:

I am very pleased with our record financial performance this year as we delivered revenues of $25 billion, up 30% versus last year. Our technologies underpin the global growth of wireless data, and our semiconductor solutions are used across the industry’s flagship smartphones. Looking forward, we expect continued strong growth of 3G and 3G/4G multimode devices around the world, particularly in China with the anticipated launch of LTE. Qualcomm remains well positioned from a growth standpoint, and we expect double-digit compound annual growth rates for both revenues and earnings per share over the next five years.

 

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Qualcomm counted up approximately $60.2 billion in total device sales during the quarter, up 29 percent y-o-y, shipping an estimated 260 to 264 million 3G/4G units priced at an average of $227 to $233 each.

Over the 12-month period, Qualcomm estimated that it shipped between approximately 1,017 and 1,033 million 3G/4G units with an average price-per-unit range of $223 to $229. That rang up to approximately $231.2 billion in total reported device sales, up 23 percent annually.

As for MSM shipments, Qualcomm shipped off roughly 190 million of those units during the quarter, an increase of 35 percent y-o-y, with an estimated total of 716 million units for the entire year.

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Looking forward at the first fiscal quarter, Wall Street is looking for Qualcomm to return next year with earnings of $1.29 per share on a revenue of $6.99 billion.

Qualcomm responded with a weaker outlook, providing a revenue guidance range of $6.3 billion to $6.9 billion, following up with earnings projected to fall around $1.10 to $1.20 per share.

For fiscal 2014, Qualcomm offered revenue guidance of $26 billion to $27.5 billion with earnings between $4.95 and $5.15 per share.

Screenshots via Qualcomm Investor Relations

Topics: Mobility, Hardware, Processors, Tech Industry

About

Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish Americ... Full Bio

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