Qualcomm president and CEO Cristiano Amon speaks at a information convention throughout CES 2022 in Las Vegas, Nevada, U.S. January 4, 2022.
Steve Marcus | Reuters
Qualcomm reported fiscal third-quarter earnings on Wednesday that beat Wall Road expectations, notably for gross sales, and offered sturdy steering for the present quarter.
Qualcomm inventory rose over 4% in prolonged buying and selling.
This is how Qualcomm did versus LSEG consensus estimates for the quarter ending in June 23:
- Earnings per share: $2.33, adjusted versus $2.25 anticipated
- Income: $9.39 billion, adjusted, versus $9.22 billion anticipated
Web revenue through the quarter was $2.13 billion, or $1.88 per share, versus $1.8 billion, or $1.60 per share within the year-ago interval.
Qualcomm stated it anticipated between $9.5 billion and $10.3 billion in gross sales within the present quarter, in comparison with Wall Road expectations of $9.71 billion. Analysts have been searching for earnings steering of $2.45, versus the corporate’s forecast of between $2.38 and $2.58.
Qualcomm’s largest and most vital enterprise is processors and modems for smartphones, which it calls its handsets enterprise. The summer time months are historically a slower a part of the annual cycle for smartphones, as a result of most new fashions launch within the fall.
Handset gross sales rose 12% on a year-over-year foundation to $5.9 billion in income, in keeping with analyst estimates from StreetAccount, which suggests {that a} deep stoop in smartphone gross sales over the previous two years is abating. Qualcomm can be framing its most superior Snapdragon chips as mandatory for “AI smartphones,” comparable to current Samsung fashions, which may run some generative AI duties like creating photographs.
Automotive chips stays small for Qualcomm however the firm sees putting extra software program and semiconductors into automobiles as considered one of its strongest alternatives for development and diversification. Automotive revenues rose 87% on an annual foundation to $811 million. Analysts polled by StreetAccount have been searching for $641.7 million.
The corporate sells chips for lower-cost gadgets in addition to Meta’s Quest headsets in a enterprise it calls “Web of Issues.” The road additionally contains revenues from the corporate’s new PC chip for Home windows laptops, referred to as Snapdragon X Elite, which it launched alongside Microsoft through the quarter.
CEO Cristiano Amon hailed the Snapdragon X launch as a “milestone” in Qualcomm’s efforts to diversify. Nonetheless, Qualcomm stated IoT income fell 8% on an annual foundation to $1.4 billion, which beat StreetAccount expectations of $641.7 million.
These three {hardware} strains are reported collectively as QCT, the corporate’s chip enterprise, which in whole reported $8.1 billion in gross sales, up 12% year-over-year.
Qualcomm additionally collects licensing charges from firms that combine 5G or different mobile applied sciences into their merchandise, reported as QTL gross sales. Licensing income solely rose 3% on an annual foundation to $1.3 billion.
Qualcomm stated it paid $949 million in dividends and repurchased 7 million shares of inventory for $1.3 billion through the quarter.
