Qualcomm beats by $0.07, beats on revs; guides Q2 EPS in-line, revs in-line (68.25 +1.26)
Reports Q1 (Dec) earnings of $0.98 per share, $0.07 better than the Capital IQ Consensus of $0.91; revenues rose 1.7% year/year to $6.1 bln vs the $5.93 bln Capital IQ Consensus.
Did not record any QTL revenues in the first quarter of fiscal 2018 or fourth quarter of fiscal 2017 for royalties due on sales of Apple's or the other licensee's products. The first quarter of fiscal 2017 results included approximately $740 million in QTL revenues related to the products of Apple and the other licensee in dispute.
Currently estimate that it will pay $3.3 billion for the Toll Charge, after application of certain tax credits, which is payable in installments over eight years beginning on January 15, 2019.
Reiterates NXPI transaction expected to close in early calendar 2018.
Co issues in-line guidance for Q2, sees EPS of $0.65-0.75 vs. $0.86 Capital IQ Consensus Estimate; sees Q2 revs of $4.8-5.6 bln vs. $5.57 bln Capital IQ Consensus Estimate.
Reaffirms 2019 cost reduction plans announced on January 16.
Has not included estimates related to the operating results of proposed acquisition of NXP in our second quarter of fiscal 2018 outlook.