Qualcomm is having a great day. Not only has the outfit acquired NXP for $47 billion it also announced that it made $6.2 billion revenue in this quarter ? an increase of 13 per cent year-over-year.
Strong chipset sales and new license agreements in China are the reasons. Snapdragon did well and the return of Snapdragon 820 contributed healthy numbers.
Qualcomm revenue guidance for Q4 2016 was between $5.4 billion and $6.2 Billion and the company reached the highest number from the estimated, the $6.2 Billion revenue. Non-GAAP diluted EPS was $1.28, an increase of 41 per cent year-over-year. This is above $1.05 - $1.15 prior guidance range.
MSM chip shipments reached 211 million, an increase of four per cent year-over-year. This was above the midpoint of Qualcomm's prior guidance range of 195M ? 215M chips.
Total reported device sales of $74.2 billion was an increase of 27 per cent year-over-year and it is above Qualcomm?s prior guidance range of $57.0B - $65.0B.
Qualcomm?s Q4 2016 is between June 25 and the September 25 and during this time the company sold between 401 and 405 million 3G/4G devices. This sales resulted with estimated average selling price of $181 to $187.
Qualcomm has a strong balance sheet. It has $32.4 billion in cash, cash equivalents and marketable securities. They could pay for almost 2/3 of NXP acquisition in cash, which shows how good they are doing.
Qualcomm also returned $1 billion, including $225 million through repurchases of 3.6 million shares of common stock and $782 million capital to stockholders. This is $0.53 per share, of cash dividends paid. On 6 October. 2016, Qualcomm announced a cash dividend of $0.53 per share payable on 16 December, 2016. Qualcomm stock holders will be laughing all the way to the bank.
If you look at the whole of financial 2016, Qualcomm had a revenue of $23.6 billion which is a seven per cent decrease year-over-year a Non-GAAP diluted EPS: $4.44, a decrease of five per cent year-over-year.
The MSM chip shipments of 842 million represent a decrease of 10 per cent year-over-year. This is not unexpected as Huawei is using its own chips for a huge volume of its phones and MediaTek is providing a lot of pressure in the mainstream and entry level market. Still, the total reported device sales of $267.4 billion is an increase of seven per cent year-over-year and it can be attributed to a higher end phone sales. Samsung Galaxy S7 is one of the success stories.
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