Qualcomm Inc Saved By China As FY16Q3 Results Show Slow 4% Year On Year Revenue Growth

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With this quarter's earnings flavor kicking in, the results are starting to menstruation in. As the marketplace declines in general, tech manufacturers in general seem optimistic, despite slowdown in year on year gains. Its Qualcomm (NASDAQ:QCOM)'southward turn today, with the San Diego chip behemothic having appear earnings results for Q3 FY16.

Qualcomm (NASDAQ:QCOM) Sees Twelvemonth On Year Acquirement Increase Past 4% With Chip Shipments Growing Sluggishly

As Samsung gets all set to launch the Galaxy Note vii, which is rumored to come with the Snapdragon 821, Qualcomm (NASDAQ:QCOM)'s overall revenues reflect a like picture. San Diego'south been struggling in 1 of core product lineups, the Snapdragon lineup of processors for quite a while. This fact becomes even more articulate as scrap shipments decline from the previous quarter. Year on Year however, we see a growth of 11%, with 201M shipments made overall.

Revenues increased to $half-dozen Billion from $5.half dozen Billion over the previous year as the company beat out analyst expectation with an EPS of 0.97/share. While chip sales overall aren't yet at Q2 levels, the market in general was expecting the number to fall below 200M. The major driver behind this quarter's 4% acquirement growth has been an increase in fees received from the Chinese market. As the U.s.a. and European markets outset to saturate, we've seen quite a few tech giants brand moves in the Eastward, with mixed results.

Intel, in particular has seen some poor luck in China, as the visitor failed to book predicted revenue levels from cloud computing platforms. Still Qualcomm (NASDAQ:QCOM)'s been making steady headway in the land, as device manufacturers slowly showtime to brand royalty payments. When compared to bit shipments of 201M, Qualcomm (NASDAQ:QCOM) made device shipments in the range of 321-325M, upwards 11% from the previous year. Device shipments refer to Qualcomm (NASDAQ:QCOM)'s 3G/4G modems, which grade an integral part of well-nigh every smartphone out there.

	Q3-FY16	Q3-FY15	Q2-FY16	Twelvemonth-On-Year	Sequential
Revenues	$half-dozen.0B	$5.8B	$v.6B	4%	9%
Operating Income	$i.6B	$one.2B	$1.2B	29%	13%
Internet Income	$ane.4B	$ane.2B	$one.2B	22%	24%
Diluted EPS	$0.97	$0.73	$0.78	33%	24%
Operating Cash Flow	$1.8B	$two.1B	$0.7B	(13%)	North/Yard

However, before you go as well optimistic, keep in mind that a portion of these is likely attributed to a decrease in price of said mobile devices. Prices accept dropped by seven% both sequentially and year on yr, which shouldn't exist that much of a surprise. Both equipment and license revenues decreased for the 9 month recognition period, resulting in an overall decrease of 100 million in Net Income. Qulcomm (NASDAQ:QCOM) is also seeing operating greenbacks flows decrease and short/long term debt levels increment and then nosotros should see some aggressive spending as well.

The company'south hoping that the concluding quarter of FY16 will ameliorate matters, with revenue to fall in the range of (1%) - 14%. EPS estimates on the other hand are expected to reject only increase yr on year. San Diego's besides hoping that chip shipments will ameliorate to 215M this quarter. Device sales on the other hand won't be recovering to Q3 FY15 levels, even as the situation in China improves. Market share price for the manufacturer jumped by 7.iii% to $59.91 subsequently yesterday's endmost of $55.82.

Source: https://wccftech.com/qualcomm-earnings-q3fy16/

Posted by: kruegerbittly.blogspot.com

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