The tech giant reported second quarter net income of $700 million, or 55 cents a share, on revenue of $5 billion, down 5% from a year ago. Non-GAAP earnings were 77 cents a share. Wall Street was looking for earnings of 71 cents per share with $4.8 billion in revenue. Shares of Qualcomm were down nearly 5% in late trading.
In terms of guidance, Qualcomm expects third quarter earnings from 70 cents to 80 cents a share with between $4.7 billion and $5.5 billion in revenue. Wall Street is expecting earnings of 87 cents a share on revenue of $5.08 billion. As for GAAP revenue, Qualcomm expects between $9.2 billion to $10.2 billion, which includes an estimated $4.5 billion to $4.7 billion resulting from its settlement with Apple.
Elsewhere on the balance sheet, Qualcomm said MSM chip shipments were 155 million, down 17% year-over-year and below the midpoint of its previous guidance range. Meanwhile, QTL Revenues came to $1.12 billion, a decrease of 8% year-over-year. Qualcomm said it had $10.4 billion of cash, cash equivalents and marketable securities as of March 31.
The company said the QCT results were impacted by overall market weakness, unfavorable OEM mix shift, including share shift towards Huawei, and economic weakness in China.
In prepared remarks, Qualcomm CEO Steve Mollenkopf expressed his pleasure at having reached multi-year agreements with Apple and said he looks forward to "continuing to support them as a customer." He added: We are executing well on our strategic priorities as 5G commercial launches begin around the world."