Qualcomm's earnings beat helps soothe concerns over its patent-licensing business

Qualcomm says Apple suppliers withholding ~$1 billion in royalty payments after lawsuit

Analysts were expecting third-quarter EPS of $1.10 on revenues of $5.95 billion.

Qualcomm reported that its revenues from QCT segment surged 10% to $3.68 billion from $$3.34 billion previous year.

The smartphone chip leader reported a second-quarter profit of $749 million on total sales of $5.02 billion, as the arbitration decision cut sharply into the company's top line and helped pull down revenue in its patent licensing segment by 40%, to $1.33 billion.

Looking ahead, QCOM forecast Q3 EPS of $0.90 to $1.15, roughly in-line with the $1.10 per share that analysts are looking for. QCT revenues rose to $3.7 billion on 179 million MSM chip shipments.

eBay's net income fell to $538 million from $550 million in last year's first quarter. StubHub drove $916 million in gross merchandise volume, representing a 6% year over year increase, and $210 million in revenue, up 18% year over year as reported. eBay added 2 million active buyers across its online platforms, bringing the total number of buyers to 169 million globally. Qualcomm has also provided a wide range of guidance for its next fiscal quarter because of the ongoing legal battle...

Shares closed at $52.61 Wednesday, down 0.1% for the day.

Steve Mollenkopf, Qualcomm CEO, speaks during his keynote address at CES in Las Vegas.Reuters/Rick Wilking (Reuters) - Qualcomm Inc, the largest maker of chips used in smartphones, reported higher-than-expected quarterly adjusted profit and revenue, helping allay concerns about the company's patent-licensing business.

Qualcomm said on Wednesday that Apple's contract manufacturers underpaid royalties in the second quarter, but revenue was not affected as the amount was similar to what Apple claimed Qualcomm owed it. Apple is now suing Qualcomm for charging excessive royalties and withholding payments. "Our performance reflects continued execution of our strategy to lead the mobile industry across a broad set of technologies, including advanced LTE and 5G, and accelerate our growth opportunities beyond mobile into automotive, IoT, security and networking". In addition to being sued by Apple, Qualcomm is facing an FTC complaint accusing it of anti-competitive business practices.

Qualcomm stock is up 89 cents, or 1.7%, at $53.50. The Motley Fool owns shares of and recommends Apple and Qualcomm.

Qualcomm, in a recent court filing answering Apple's lawsuit, alleged that Apple influenced contract manufacturers that assemble iPhones, and which have license agreements with Qualcomm, to stop paying royalties for their use of Qualcomm's patents.

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