Qualcomm Inc. said it is targeting earnings per share of between $6.75 and $7.5 on an adjusted basis for fiscal 2019, including a cost reduction program worth $1 billion. Individual stockholders should refuse the takeover offer from Broadcom Ltd. due to "the considerable near- and long-term value creation" ahead, according to the update released on Tuesday by the San Diego–based chipmaker. It has reported $4.28 per share fiscal 2017, ending with September 24.
The company led by chief executive Steve Mollenkopf said the hostile bid of $70 per share by the rival incorporated in Singapore does not take into account the target entity's "clear path to near-term value," particularly in 5G. The transaction would take at least 18 months due to the required regulatory clearances, with possible "complex divestitures or operating restrictions," which could also make it "impossible," Qualcomm claimed. Broadcom also has headquarters in San Diego.
The statement adds there is accretion or a substantial share repurchase ahead from the pending acquisition of NXP Semiconductors, while that the management is pursuing expansion in core operations. The GAAP diluted earnings for the next fiscal year are estimated at $4.47 to $5.22 per share, compared to $1.65 for fiscal 2017.
