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Qualcomm revenue forecast meets estimates, signs contract with Huawei

Qualcomm revenue forecast meets estimates, signs contract with Huawei
FILE PHOTO: A sign on the Qualcomm campus is seen in San Diego, California, U.S. November 6, 2017. REUTERS/Mike Blake/File Photo   -   Copyright  Mike Blake(Reuters)
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(Reuters) – Qualcomm Inc forecast current-quarter revenue that met analysts’ expectations and said it had negotiated a new interim contract with Huawei Technologies that added to revenue in the quarter, sending its shares up 4 percent after the bell.

The new interim contract with Huawei means the only big dispute Qualcomm has with a customer now is with Apple, after it resolved its disputes with Samsung Electronics last year.

Qualcomm’s forecast comes as a relief to investors after a bunch of other chipmakers, including Taiwan Semiconductor Manufacturing Co, Samsung and Intel Corp, delivered lower-than-expected sales forecasts this month, citing economic weakness in China.

Modem chip shipments fell 21.5 percent to 186 million, but were better than analysts estimate of 185.4 million, according to FactSet.

Qualcomm said it expects current-quarter revenue to be between $4.4 billion (£3.37 billion) and $5.2 billion, meeting analysts’ estimate of $4.80 billion at the midpoint, according to IBES data from Refinitiv.

Net income attributable to Qualcomm was $1.07 billion, or 87 cents per share, for the first quarter ended Dec. 30, compared with a loss of $5.98 billion, or $4.05 per share, a year earlier when it took a $6 billion tax charge.

Excluding items, the company earned $1.20 per share.

Revenue fell 20 percent to $4.84 billion, slightly missing the analyst average estimate of $4.90 billion.

(Reporting by Shariq Khan and Arjun Panchadar in Bengaluru; Editing by Bernard Orr and Arun Koyyur)

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