BUZ INVESTORS After-hours buzz which companies are making headlines after the bell
Qualcomm (QCOM -0.1%) has turned up after hours, +2.9%, after it beat analyst expectations with Q2 revenues and profits.
Revenues rose 8% Y/Y to $6B, flat with the previous quarter, and net income rose 28% from last year (and 12% Q/Q).
Revenues by segment: QCT, $3.68B (up 10%); QTL, $2.25B (up 5%). Earnings before taxes, by segment: QCT: $475M (up 179%); QTL, $1.96B (up 5%).
Growth was solid “especially in the important automotive, networking and IoT growth areas,” says CEO Steve Mollenkopf.
Cash, equivalents and marketable securities were at $28.9B at quarter’s end, vs. a year-ago $30B.
Effective annual income tax rate estimated at 17% for the full year, and 13% for Q2 (15% non-GAAP).
For Q3, it’s guiding to revenues of $5.3B-$6.1B (ranging from a 12% decline to a 1% gain Y/Y) and non-GAAP EPS of $0.90-$1.15 (22% decline to 1% gain). Analyst consensus is for revenues of $5.91B and EPS of $1.10. Guidance is wide due to uncertainty over possible underpayments from Apple contract manufacturers.
CSX +2.5% AH after comfortably beating Q1 earnings expectations on a 9.5% Y/Y increase in revenues to $2.87B, fueled in part by a 3% rise in coal shipments.
CSX says its intermodal business grew 1% during Q1, while the only segment to retreat during the period was its forest products unit, which contracted 1%.
Same store sales pricing improved 3.9%, reflecting gains across all major markets and led by temporal strength in export coal; overall core pricing gained 7% amid increased fuel recovery and a favorable product mix.
CSX says it is making adjustments throughout the company to improve asset utilization, achieve greater operations efficiency and reduce its cost structure under new CEO Hunter Harrison.
Excluding the Costco-related business, adjusted revenue was higher by 7% Y/Y in Q1. Provisions of $573M up 32%. Expenses of $5.5B up 1% thanks to higher rewards costs. ROE of 25.1% up from 23.6%. The tax rate dipped to 32% from 35%.
Adjusted for Costco, cardmember spending rose 8% Y/Y, with loans up 11%.
Management is confident they will deliver on the $5.60-$5.80 full-year EPS outlook.
Previously: American Express beats by $0.06, beats on revenue (April 19)
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