Qualcomm CEO Cristiano Amon responds to a query throughout a keynote dialog at CES 2024, an annual client electronics commerce present, in Las Vegas, Nevada, on Jan. 10, 2024.
Steve Marcus | Reuters
Qualcomm reported second-quarter earnings on Wednesday that surpassed Wall Road expectations, and offered a powerful information for the present quarter.
Shares rose about 3% in prolonged buying and selling.
Here is the way it did versus LSEG consensus estimates for the quarter ending in March:
- Earnings per share: $2.44 adjusted vs. $2.32 anticipated
- Income: $9.39 billion adjusted vs. $9.34 billion anticipated
Internet revenue through the quarter was $2.33 billion, or $2.06 per share, versus $1.7 billion, or $1.52 per share, within the year-earlier interval.
Qualcomm mentioned it anticipated between $8.8 billion and $9.6 billion in gross sales within the present quarter, increased than Wall Road expectations of $9.05 billion. Analysts had been on the lookout for earnings steering of $2.17 per share, versus the corporate’s forecast of between $2.15 and $2.35.
Qualcomm’s most vital enterprise is its handsets enterprise. It sells processors, modems and different components for smartphones — primarily Android units, but additionally some modem components in iPhones.
Handset gross sales rose 1% year-over-year to $6.18 billion, signaling that the smartphone market could also be recovering after a couple of years of post-covid slumping. Qualcomm referred to as out sturdy demand for “premium tier” smartphones that require essentially the most superior chips, particularly in China. Qualcomm mentioned that income from Chinese language cellphone makers elevated 40% on an annual foundation through the quarter.
Qualcomm calls the telephones that use its greatest chips “AI-powered smartphones,” citing options reminiscent of generative e mail completion, stay translation, and digital assistants that use the chips specialised “NPU” AI part. One such cellphone is Samsung’s Galaxy S24 Extremely, which launched earlier this yr.
The corporate’s automotive enterprise, which sells chips to automakers, additionally confirmed indicators of progress, rising 35% on an annual foundation to $603 million. The corporate’s so-called “Web of Issues” enterprise — comprised of lower-cost chips — contracted 11% year-over-year to $1.24 billion.
These three enterprise traces are reported collectively as QCT, the corporate’s chip enterprise, which noticed a 1% year-over-year gross sales improve to $8.03 billion. Qualcomm additionally highlighted
The corporate’s licensing enterprise, QTL, during which it collects charges from firms that need to combine 5G or mobile know-how into their merchandise, rose 2% on an annual foundation to $1.32 billion.
Qualcomm mentioned it paid $895 million in dividends and repurchased $731 million in shares through the quarter. Qualcomm raised its quarterly dividend to 85 cents from 80 cents beforehand.
