Qualcomm today released its first quarter financial report for fiscal year 2020. The report shows that Qualcomm’s first-quarter net profit was US$925 million, a decrease of 13% from US$1.068 billion in the same period last year; revenue was US$5.077 billion, an increase of 5% from US$4.842 billion in the same period last year. Qualcomm’s first-quarter performance exceeded Wall Street analysts’ expectations, and its outlook for the second-quarter performance also exceeded expectations, which pushed its after-market share price to rise by more than 2%.
The following is the specific content of the financial report:
Net income/loss:
In the fiscal quarter ended December 29, Qualcomm’s net profit was US$925 million, a decrease of 13% from US$1.068 billion in the same period last year; diluted earnings per share was US$0.80, compared with US$0.87 per diluted share in the same period last year. A drop of 8%. Qualcomm’s first-quarter operating profit was US$1.030 billion, compared with US$710 million in the same period last year.
Not in accordance with the United States General Accounting Principles (Non-GAAP), Qualcomm’s first-quarter net profit was US$1.151 billion, down 21% from US$1.464 billion in the same period last year; diluted earnings per share was US$0.99, down from US$1.20 in the same period last year 18%, this performance exceeded analyst expectations. According to data provided by the Yahoo Finance Channel, 20 analysts had previously expected Qualcomm’s first-quarter earnings per share to reach US$0.85.
Revenue:
Qualcomm’s first-quarter revenue was US$5.077 billion, an increase of 5% from US$4.842 billion in the same period last year. This performance also exceeded analyst expectations. According to data provided by Yahoo Finance Channel, 19 analysts had previously expected Qualcomm’s first-quarter revenue to reach 4.83 billion U.S. dollars.
Qualcomm’s first-quarter revenue from equipment and services was US$3.534 billion, down from US$3.754 billion in the same period last year; revenue from authorization was US$1.543 billion, higher than US$1.088 billion in the same period last year. Qualcomm’s total operating costs and expenditures in the first fiscal quarter were US$4.047 billion, down from US$4.132 billion in the same period last year. Among them, the cost of equipment and service revenue was US$2.113 billion, lower than US$2.188 billion in the same period last year; R&D expenditure was US$1.406 billion, higher than US$1.269 billion in the same period last year; Sales, general affairs and administrative expenses were US$528 million, higher than In the same period last year, it was US$526 million; other expenditures were zero, compared with US$149 million in other expenditures in the same period last year.
Qualcomm CDMA Technology Group’s first-quarter revenue was US$3.618 billion, a decrease of 3% from US$3.739 billion in the same period last year; pre-tax profit was US$479 million, a decrease of 20% from US$598 million in the same period last year; pre-tax profit margin 13%, down 3 percentage points from 16% in the same period last year. Qualcomm Technology Licensing Group’s first-quarter revenue was US$1.404 billion, an increase of 38% from US$1.018 billion in the same period last year; profit before tax was US$1.017 billion, an increase of 72% from US$590 million in the same period last year; profit before tax was 72%, an increase of 14 percentage points from 58% in the same period last year. MSM chip shipments in the quarter were 155 million, down 17% from 186 million in the same period last year.
Other financial details:
Qualcomm’s operating cash flow in the first fiscal quarter was US$1.118 billion, higher than the US$356 million in the same period last year. As of December 29, 2019, the total amount of cash and cash equivalents held by Qualcomm was US$11.109 billion, compared to US$10.06 billion as of the end of the first quarter of fiscal year 2019.
In the first quarter of fiscal 2020, Qualcomm returned a total of US$1.5 billion in cash to shareholders, of which US$710 million was returned in the form of cash dividends, or approximately US$0.62 per share; and 9.2 million shares of common stock were repurchased. This form returned $762 million in cash to shareholders.
Performance Outlook:
Qualcomm expects revenue in the second quarter of fiscal 2020 to reach US$4.9 billion to US$5.7 billion, the median value (US$5.3 billion) less than analysts had expected. According to data provided by the Yahoo Finance Channel, 19 analysts had previously expected Qualcomm’s second-quarter revenue to reach 5.08 billion U.S. dollars. Qualcomm expects earnings per share in the second fiscal quarter to reach US$0.50 to US$0.65; excluding one-time items (not in accordance with US GAAP), Qualcomm expects earnings per share in the second fiscal quarter to reach US$0.80 to US$0.95, of which The value ($0.875) exceeded analysts’ previous expectations. According to data provided by Yahoo Finance Channel, 20 analysts had previously expected Qualcomm’s earnings per share in the second quarter to reach 0.86 US dollars.
Stock price changes:
On the same day, Qualcomm’s stock price rose by 1.98 US dollars in Nasdaq regular trading to close at 90.91 US dollars, an increase of 2.23%. In the subsequent after-hours trading as of 4:57 pm on Wednesday, US Eastern Time (5:57 am on Thursday, Beijing time), Qualcomm’s stock price rose again by $1.94 to $92.85, an increase of 2.13%. In the past 52 weeks, Qualcomm’s highest price was 96.17 US dollars, and the lowest price was 49.91 US dollars.
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