Qualcomm Inc, and American Express issued earnings for the quarter at the close in today’s session.
QUALCOMM, Inc. released its 2Q of fiscal year 2016 financial earnings along with 3QFY16 outlook. The stock is likely declining after markets closed.
The company posted an earnings per share (EPS) of $$1.04, beating the analysts’ estimate of $0.96. Its revenue settled at $5.6 billion, compared to the analysts’ forecast of $5.34 billion. Meanwhile, MSM shipments have seen loss about 19% to $189 million on a year-over-year (YoY) basis, while the its 3G/4G device shipments plunge to 335 million units, which was previously at 339 million units.
QUALCOMM is expected to post an EPS in the range of $0.90-$1.00 for 3Q of fiscal year 2016, suggesting the mid-point of which slips the consensus estimate of $1.02. Its revenue is anticipated to record in the range of $5.2-6 billion, compared to analysts’ forecast of $5.56.
Steve Mollenkopf, CEO, said, “We are continuing to build momentum into the second half of our fiscal 2016 with traction for our Snapdragon processors in the premium and high tiers and strong execution of our strategic realignment plan.”
QCOM shares recently lost about 0.19% at $51.91. Traded shares amounted to 10.46 million, compared to its average daily trading volume worth 10.10 million shares.
American Express Company Earnings
American Express Company released its financial earnings for 1Q of fiscal year 2016, along with outlook on FY16 and FY17, which sent its shares to rally. The stock currently trading over 3% after markets closed.
Meanwhile, the company posted an EPS of $1.45, beating the analysts’ expectations of $1.35. Its revenue settled at $8.1 billion, posting above analysts’ forecast of $7.99 billion
Under the efforts of expanding business, the company’s market and promotion cost surge about $118 million.
Charges for restructuring settled for $84 million, while there was an increase in rewards expenses amounting to $63 million, fueled by higher spending on Card Member. Sales from the JetBlue co-brand portfolio has provided benefits worth $127 million for AXP, and was included in operating expenses. The company has seen a return on average equity of 23.6%, compared to last year’s 29%.
Subsequently, AXP is expected to post and EPS for FY16 in a range of $5.40-$5.70, compared to analysts’ expectations of $5.55. The company anticipates an EPS for FY17 to settle at $5.60, suggesting to be near with the $5.61 forecast.
Kenneth I. Chenault, Chairman and CEO, said, “Despite strong competition throughout the payments industry, we generated a 4 percent increase in FX-adjusted revenues. Those revenues reflected strong, underlying growth in our lending portfolio, along with higher Card Member spending and fee income.”
AXP shares are currently trading up at 3.40% at $67.40. Shares traded are worth 8.4 million shares, compared to its average daily trading volume of shares amounting to 4.87 million.
Qualcomm Profit Posts 11% Higher
Sales on wireless spectrum in the U.K. have fueled to offset declines on revenue of about 19%.
Qualcomm Inc. stated their earnings surges about 11% amid the prior quarter, led by gains on U.K. sales of assets that has offset declines in revenue.
Over $200 million would be recognize in the quarter’s revenue, which was previously delayed after resolving arbitration patent dispute with LG Electronics, the company said.
Meanwhile, LG Electronics confirmed to turn down the arbitration with prejudice, and continue to have access to patented technologies of Qualcomm.
Steve Mollenkopf, the Chief Executive, said, “We are pleased with our continued progress in the licensing business, including the recent conclusion of new license agreements in China and the resolution of our dispute with LG Electronics.”