Qualcomm (QCOM) Tops Q3 EPS by 30c, Expects to Terminate NXP (NXPI) Deal if Not Approved

Qualcomm (NASDAQ: QCOM) reported Q3 EPS of $1.01, $0.30 better than the analyst estimate of $0.71. Revenue for the quarter came in at $5.6 billion versus the consensus estimate of $5.19 billion.

GUIDANCE:

Qualcomm sees Q4 2018 EPS of $0.75-$0.85, versus the consensus of $0.76. Qualcomm sees Q4 2018 revenue of $5.1-5.9 billion, versus the consensus of $5.44 billion.

In the event of the termination of our proposed acquisition of NXP, we intend to implement a stock repurchase program to repurchase up to $30 billion of our outstanding common stock.

Agreement to Acquire NXP We have entered into a definitive agreement, as amended, to acquire NXP Semiconductors N.V. (NXP) for estimated total cash consideration to be paid to NXP’s shareholders of $44 billion. The transaction remains subject to receipt of regulatory clearance from the State Administration for Market Regulation in China (SAMR) and other closing conditions, including the tender of at least 70% of the issued and outstanding common shares of NXP in the offer. In the absence of approval from SAMR or other material developments, we expect to terminate the transaction after 11:59 p.m. New York time on July 25, 2018, which is the “End Date” for the transaction under the definitive agreement. If SAMR has not approved by the End Date, NXP will be entitled to receive a termination fee of $2.0 billion, which will be paid using existing cash and cash equivalents. If events occur that cause us to not terminate the transaction, we will continue to pursue the acquisition of all of the issued and outstanding shares of NXP.

For earnings history and earnings-related data on Qualcomm (QCOM) click here.

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