Qualcomm Inc. (Nasdaq: QCOM) has forecast adjusted per share profit of $6.75 to $7.50, on revenue of $35 billion to $37 billion, for the fiscal year that ends in September 2019. It says it has a "clear path to near term value" thanks to a new $1 billion cost cutting plan, accretion from its NXP Semiconductors N.V. (Nasdaq: NXPI) acquisition -- or a large share repurchase if the $39 billion buyout falls through -- and the resolution of its licensing disputes with Apple Inc. (Nasdaq: AAPL) (See Qualcomm Pooh-Poohs Apple Lawsuits.)
Qualcomm's tender offer for NXP now expires at the end of the day on February 9. (See Qualcomm Makes $39B Bet on NXP.)
The profit forecast from Qualcomm is part of its continued bid to stave off a proxy fight with Broadcom Corp. (Nasdaq: BRCM), following Broadcom's $103 billion to acquire Qualcomm. (See Broadcom Offers $130B for Hostile Takeover of Qualcomm.)
The bid, Qualcomm says, undervalues the company and doesn't take into account its "value to the transformative opportunity in 5G." Qualcomm claims it is "12-24 months ahead of our merchant competitors in the transition to 5G."
"All OEMs and operators working to bring 5G to the market are working with Qualcomm," the company says in a letter to stockholders.
Qualcomm's shares are trading down slightly, by 0.5%, $67.70 early Thursday.
— Dan Jones, Mobile Editor, Light Reading