How Successful Has Qualcomm’s $30 Billion Buyback Been?

In fiscal 2018’s fourth quarter, Qualcomm reduced its share count to 1.41 billion by repurchasing 254.6 million shares for $21.14 billion. This accelerated buyback was accretive to Qualcomm’s EPS in the fourth quarter of fiscal 2018. Sequentially, its non-GAAP net income fell 13.3%, and its EPS fell 10.9% due to its lower share count.

Qualcomm expects to reduce its diluted share count to 1.19 billion to 1.2 billion by the end of fiscal 2019. The company expected to report EPS of $5.25 in fiscal 2019 with the help of the stock buyback and cost cutting, but this target looks difficult to achieve under the current circumstances. Analysts expect the company to report EPS of $3.90 in fiscal 2019.

Clouded by headwinds, Qualcomm’s buyback may not be delivering its desired results. In contrast, Broadcom’s buyback program revived investor confidence this year, which we’ll look at next.

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View more information: https://marketrealist.com/2018/12/how-successful-has-qualcomms-30-billion-buyback-been/

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