Qualcomm Incorporated shares fell nearly 2% in early trading on Thursday even though the company reported strong first quarter financial results. Revenue rose 0.2% to $6 billion – beating consensus estimates by $70 million – and net income of $0.98 per share beat consensus estimates by seven cents per share. The stock appears unlikely to break out from trendline resistance levels following the earnings report.
Qualcomm’s financial results continue to be affected by ongoing disputes with Apple Inc. and its contract manufacturers. At the same time, CNBC reports that Broadcom Limited sees the earnings report as concerning, but not concerning enough to call off its acquisition bid. Broadcom would have to take a massive break-up fee to combat antitrust concerns. Investors will be closely watching the March 6 annual meeting for developments regarding a hostile takeover. (See also: Qualcomm: Increased Chance of Higher Broadcom Bid.)
Qualcomm shares moved lower following the company’s first quarter results, but traders will be watching these key levels. …read more
Read more here: Qualcomm Stock Moves Lower Despite Earnings Beat
Category: QCOM, AAPL, AVGO