Stocks Fall After Earnings: Yum! Brands & Qualcomm (NYSE:YUM, NASDAQ:QCOM)

Stocks Fall After Earnings: Yum! Brands & Qualcomm (NYSE:YUM, NASDAQ:QCOM)

Yum! Brands, Inc. (NYSE:YUM) shares are trading lower in the pre-market session despite the company posted a solid  first-quarter revenue and profit growth, topping analysts’ estimates.

For the first quarter, the company reported a net income of $458 million, or 96 cents a share, up 73% from a year ago profit of $264 million or 54 cents a share. On an adjusted basis, the company would have earned 76 cents a share, topping analysts’ forecast by 3 cents.

Revenue during the quarter grew 13% year-over-year to $2.74 billion, again ahead of analysts’ estimates of $2.71 billion.

The company posted a strong 27% jump in its operating profit from U.S. driven by a 6% jump in sales at Taco Bell, followed by a 5% jump in Pizza Hut and 2% in KFC.

The company had expanded its operations overseas in the first three months with a addition of 168 new restaurants in China, a record number of openings in the first quarter there. Excluding India and China, the company opened 123 new stores in 41 countries in its international division. Moreover, the company is targeting to open 100 new restaurants this year in India.

Shares of YUM are down about 2% in the pre-market session.

Shares of QUALCOMM, Inc. (NASDAQ:QCOM) also slid in the pre-open session as the company provided disappointing  third-quarter and full-year earnings  outlook as it projects costs increase, over shadowing its better-than-estimated second-quarter earnings.

For the current quarter, the company expects to earn 83 cents to 89 cents a share on revenue of $4.45 billion to $4.81 billion, well below analysts’ projections of 90 cents a share on revenue of $4.81 billion.

For the full year, the company projects to earn adjusted net income between $3.61 a share – $3.76 per share on revenue of $18.7 billion to $19.7 billion, again missing analysts’ estimates of $3.78 a share on revenue of $19.54 billion.

For the latest quarter, the company reported a profit of $2.23 billion, or $1.28 a share, up sharply from its year ago profit of $999 million, or 59 cents a share. On an adjusted basis, the company would have earned $1.01 a share, topping analysts’ estimates by 6 cents.

Revenue during the quarter grew 28% to $4.94 billion, from $3.87 billion in the same period a year earlier, compared to analysts’ target of $4.83 billion.

Shares of QCOM are down 3.31% to $64.77.