Qualcomm Reports a Mixed Fourth Quarter, Shares Plunge

Giant chip designer Qualcomm  reported fourth-quarter revenues above analyst targets, but adjusted earnings came in slightly below Wall Street's. Reacting to the mixed report, Qualcomm shares fell 5% in early after-hours trading.

Total revenue jumped 33% year over year to $6.5 billion, edging out analyst targets set at $6.3 billion. Non-GAAP earnings took an 18% annualized leap to $1.05 per share, falling short of the $1.08 analyst target.

Qualcomm CEO Paul Jacobs sees LTE 4G installations in China driving sales growth over the next few years. "We expect continued strong growth of 3G and 3G/4G multimode devices around the world," he said. "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."

However, the shorter-term outlook for the next quarter was not overly impressive. The midpoint of Qualcomm's revenue guidance range stops at $6.6 billion, far short of the Street's $7.0 billion target. On the bottom line, analysts are looking for earnings of $1.29 per share, but Qualcomm's guidance tops out at just $1.20 per share, with a midpoint at $1.15. Jacobs did not explain the gap between his strong long-term view and soft next-quarter guidance. Expect tonight's analyst call to fill in some of the blanks.

You can access the full release here, alongside the slide deck for Qualcomm's earnings call.

The article Qualcomm Reports a Mixed Fourth Quarter, Shares Plunge originally appeared on Fool.com.

Fool contributor Anders Bylund has no position in any stocks mentioned. Check out Anders' bio and holdings or follow him on Twitter and Google+.The Motley Fool owns shares of Qualcomm. Try any of our Foolish newsletter services free for 30 daysWe Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story