Qualcomm, Inc. Misses Q4 Estimates; Shares Sink 4% In After Hours (QCOM)

The San Diego-based communications and networking bellwether, Qualcomm Inc. (QCOM), announced fourth quarter earnings results after the bell on Wednesday that came in slightly below analysts’ expectations.

QCOM Earnings in Brief

-The company’s Q4 EPS came in at $1.05 a share, compared to the expected $1.08 a share.
-In terms of revenues, QCOM raked in $6.48 billion last quarter, beating the projected figure of $6.34 billion.
-The company’s net income of $1.50 billion marks an impressive 18% increase year-over-year, but is down 5% from the last quarter.
-Looking ahead, QCOM sees FY2014 EPS of $4.95-$5.15 a share, compared to the consensus of $4.95; revenues are expected to come in at $26 billion to $27.5 billion versus the consensus of $27.5 billion, reflecting a lackluster guidance from the company.

CEO Commentary

Dr. Paul Jacobs, company chairman and CEO, commented after the earnings report was made public, stating ”I am very pleased with our record financial performance this year as we delivered revenues of $25 billion, up 30% versus last year. Our technologies underpin the global growth of wireless data, and our semiconductor solutions are used across the industry’s flagship smartphones.” He went onto add, “Looking forward, we expect continued strong growth of 3G and 3G/4G multimode devices around the world, particularly in China with the anticipated launch of LTE. 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.”

Dividend Commentary 

There was no mention of a dividend raise in QCOM’s quarterly report; looking back, the last dividend hike was in June of this year, when the quarterly payout increased from $0.25 to $0.35 a share. Given the company’s sound financial footing and solid track record of dividend increases over the long-haul, it is expected that it will raise its distribution again in the foreseeable future.

Stock Performance 

Investors fretted over QCOM’s results as evidenced by the stock sinking over 4% in after-hours trading. Year-to-date, QCOM is lagging behind the broad market with a 12% return compared to the S&P 500′s gain of 24%.