Qualcomm pops on chipmaker's earnings and revenue beat
Ann Wang | Reuters
Qualcomm reported fourth-quarter earnings on Wednesday that beat Wall Avenue expectations for earnings and income, and the corporate guided to a precise December quarter.
The shares rose 10% in prolonged procuring and selling at one point before falling to a receive of about 4%.
Here’s how the corporate did versus Refinitiv consensus expectations for the quarter ending Sept. 29:
- Earnings per portion: $2.69, adjusted $2.56 anticipated
- Earnings: $10.24 billion versus $9.90 billion anticipated
Qualcomm acknowledged it expects income in the present quarter of between $10.5 billion and $11.3 billion, with the midpoint of that adjust beating LSEG consensus expectations of $10.59 billion.
The corporate reported $2.92 billion in rating profits, or $2.59 per portion, a intriguing leap from closing yr’s $1.49 billion, or $1.23 per portion. Qualcomm reported $33.19 billion in total income in its fiscal 2024, a 9% amplify from 2023.
Qualcomm’s fortunes personal historically been tied to the smartphone industry, the put the corporate offers a unfold of chips to handset makers, including gadget-on-a-chip processors, modems, and antennas. The corporate makes the chip on the guts of most high-end Android devices, and many decrease-end telephones as properly. Qualcomm additionally sells modems and related chips to Apple for its iPhones, and closing yr acknowledged its contract for 5G chips ran through 2026.
Qualcomm reported a 12% amplify in handset chip sales to $6.1 billion, basically basically based completely on FactSet estimates. Qualcomm launched its high-end chip for 2025, called Snapdragon 8 Elite, in October.
“In handsets we delivered bigger than 20% yr-over-yr growth in Android revenues,” acknowledged Qualcomm CFO Akash Palkhiwala on a name with analysts.
Below CEO Cristiano Amon, the corporate has various away from being a smartphone seller and has launched and invested carefully in producing chips for PCs, autos, and industrial machines.
“We’re going to proceed to transform Qualcomm from a wireless communications company into a related computing company for the age of AI,” Qualcomm CEO Cristiano Amon acknowledged on the earnings name with analysts.
Qualcomm has additionally made efforts to model itself as a inch-setter in AI, having developed smartphone chips with unquestionably superb aspects for machine studying since 2017. But now not like Nvidia, the corporate would now not form the roughly graphics processors for details facilities which would per chance well be primitive for immense AI packages fancy OpenAI’s ChatGPT.
The automotive trade grew 86% on an annual foundation to $899 million in sales. Qualcomm says it has billions of greenbacks in trade with automakers for the time being in its pattern pipeline, and highlighted it was once the fifth consecutive quarter of growth. Qualcomm acknowledged that it anticipated automotive sales in the present quarter to rise 50% on an annual foundation.
The corporate’s “cyber net of issues” trade comprises each chips for industrial functions as properly because the chips Meta makes exercise of in its Quest handsets and Ray-Ban Tidy Glasses. It additionally comprises the brand new trade selling chips for laptops running Microsoft Dwelling windows. The division reported $1.68 billion in income, a 22% amplify from a yr earlier.
Qualcomm’s chip trade, including its handset, automotive, and other chips, which together is reported as QCT, saw sales rise 18% for the length of the quarter to $7.37 billion in total.
The corporate’s winning technology licensing trade, QTL, reported $1.52 billion in income, a 21% amplify over the identical duration closing yr.
Qualcomm acknowledged its board had licensed $15 billion in additional buybacks. Someday of the fourth quarter, it repurchased $1.3 billion worth of shares and paid out $947 million in dividends.
WATCH: CNBC’s plump interview with Qualcomm CEO Cristiano Amon
