Qualcomm (QCOM) announced Thursday it would launch an accelerated share-repurchase program for $5 billion, a move one analyst said shows confidence in the company’s “ability to turn things around.” The San Diego-based chipmaker said in a press release it reached agreements with two financial institutions to repurchase $5 billion in stock, with an initial delivery of about 57.7 million shares. The repurchase is being funded through a recently
While the tech-heavy Nasdaq stock index is nearing its all-time intraday high, shares of top chipmakers have tumbled — even those that supply Apple (AAPL) — and are now below key levels of support. The selloff appeared to begin Wednesday, when Texas Instruments (TXN) said Q1 sales were hurt by weak PC demand and offered disappointing Q2 guidance. Also on Wednesday, wireless chipmaker Qualcomm (QCOM) slashed its 2015 earnings and sales forecasts,
Qualcomm (QCOM) got at least one downgrade and several price target cuts Thursday after the company slashed $1 billion from its revenue outlook for its fiscal 2015 ending Sept. 27. The San Diego-based chipmaker, however, late Wednesday reported a fiscal Q2 beat. CEO Steven Mollenkopf said the company would take a comprehensive look at its cost structure after losing business to “a large customer,” which analysts say is Samsung. FBR Capital Markets