Qualcomm said Wednesday its second-quarter earnings fell 52 percent on 5 percent growth in revenue, but the results beat expectations and the company’s stock rose.
The San Diego-based wireless pioneer earned $363 million, or 24 cents a share, on revenue of $5.3 billion in its second fiscal quarter ended March 25, compared with $749 million, or 50 cents a share, on revenue of $6.1 billion a year ago.
“Our fiscal second quarter results reflect better than expected performance in our semiconductor business
and lower operating expenses,” said CEO Steve Mollenkopf.
“Looking forward, we remain committed to driving improved performance in fiscal 2019, consistent with our prior guidance,” he added. “We are making good progress on executing our $1 billion cost plan, are focused on closing our pending acquisition of NXP and are well positioned to drive the global commercialization of 5G.”
The company’s adjusted earnings per share came in at 80 cents, 10 cents more than the consensus estimate on Wall Street.
Qualcomm’s stock jumped nearly $2 per share after the earnings announcement and was trading near $51 after hours.
For the next quarter, the company is forecasting revenue of $4.8 billion to $5.6 billion and net earnings per share of 35 cents to 50 cents.