Qualcomm pops on chipmaker’s earnings and revenue beat
Ann Wang | Reuters
Qualcomm reported fourth-quarter earnings on Wednesday that beat Wall Street expectations for earnings and earnings, and the company guided to a solid December quarter.
The shares rose 10% in prolonged trading at one point earlier than falling to a accomplish of about 4%.
Here is how the company did versus Refinitiv consensus expectations for the quarter ending Sept. 29:
- Earnings per portion: $2.69, adjusted $2.56 anticipated
- Income: $10.24 billion versus $9.90 billion anticipated
Qualcomm said it expects earnings within the recent quarter of between $10.5 billion and $11.3 billion, with the midpoint of that differ beating LSEG consensus expectations of $10.59 billion.
The corporate reported $2.92 billion in accumulate profits, or $2.59 per portion, a animated jump from final 365 days’s $1.49 billion, or $1.23 per portion. Qualcomm reported $33.19 billion in total earnings in its fiscal 2024, a 9% lengthen from 2023.
Qualcomm’s fortunes possess historically been tied to the smartphone replace, where the company affords an expansion of chips to handset makers, alongside side system-on-a-chip processors, modems, and antennas. The corporate makes the chip at the coronary heart of most high-end Android devices, and loads decrease-end telephones as nicely. Qualcomm also sells modems and connected chips to Apple for its iPhones, and final 365 days said its contract for 5G chips ran thru 2026.
Qualcomm reported a 12% lengthen in handset chip sales to $6.1 billion, in accordance with FactSet estimates. Qualcomm presented its high-end chip for 2025, known as Snapdragon 8 Elite, in October.
“In handsets we delivered bigger than 20% 365 days-over-365 days increase in Android revenues,” said Qualcomm CFO Akash Palkhiwala on a name with analysts.
Below CEO Cristiano Amon, the company has a mode of far from being a smartphone provider and has presented and invested heavily in producing chips for PCs, vehicles, and industrial machines.
“We can proceed to remodel Qualcomm from a wireless communications company into a connected computing company for the age of AI,” Qualcomm CEO Cristiano Amon said on the earnings name with analysts.
Qualcomm has also made efforts to impress itself as a pacesetter in AI, having developed smartphone chips with if truth be told just correct aspects for machine finding out since 2017. Nevertheless not like Nvidia, the company would not possess the more or much less graphics processors for files centers which would possibly also be ancient for big AI capabilities relish OpenAI’s ChatGPT.
The auto industry grew 86% on an annual basis to $899 million in sales. Qualcomm says it has billions of bucks in industry with automakers within the intervening time in its pattern pipeline, and highlighted it used to be the fifth consecutive quarter of increase. Qualcomm said that it anticipated automobile sales within the recent quarter to upward thrust 50% on an annual basis.
The corporate’s “web of issues” industry comprises both chips for industrial applications as nicely as the chips Meta uses in its Quest handsets and Ray-Ban Natty Glasses. It also comprises the fresh industry selling chips for laptops operating Microsoft Dwelling windows. The division reported $1.68 billion in earnings, a 22% lengthen from a 365 days earlier.
Qualcomm’s chip industry, alongside side its handset, automobile, and numerous chips, which together is reported as QCT, saw sales upward thrust 18% correct thru the quarter to $7.37 billion in total.
The corporate’s worthwhile expertise licensing industry, QTL, reported $1.52 billion in earnings, a 21% lengthen over the same length final 365 days.
Qualcomm said its board had licensed $15 billion in extra buybacks. One day of the fourth quarter, it repurchased $1.3 billion rate of shares and paid out $947 million in dividends.
WATCH: CNBC’s plump interview with Qualcomm CEO Cristiano Amon
