Qualcomm Q1 better than expected, outlook strong

Qualcommreported on Wednesday its latest financials for the previous fiscal quarter.

The chipmaker reported a fiscal first-quarter net income of $1.5 billion, or 97 cents a share (statement). Revenue landed in at $5.77 billion.

Wall Street was expecting 90 cents per share on a revenue of $5.7 billion.

Chief executive Steve Mollenkopf said the company delivered a "stronger than expected" quarter, thanks in part to an increase in 3G and 4G device sales.

"We signed several new license agreements in China and are on track with our cost reduction initiatives. Design traction for our new Snapdragon 820 processor continues to be strong, and we expect improving trends in our chipset business in the second half of fiscal 2016," he added.

For the quarter:

• 242 million shipments of MSM chips, up 10 percent year-over-year
• $60.6 billion in revenue from device sales, up 7 percent year-over-year
• 307-311 million 3G/4G device shipments (approx.), up 8 percent year-over-year

Qualcomm ended the quarter with $30.6 billion in cash and equivalents.

Qualcomm said for the second quarterthat it expects $1.40 per share on revenues of $6.9 billion.

Wall Street was expecting earnings of $1.02 a share on revenue of $5.69 billion.

The company's stock ($QCOM) stock wasdown 2 percent at market close, but trading up in after-hours trading.