Qualcomm CEO Cristiano Amon responds to a question all through a keynote conversation at CES 2024, an annual shopper electronics trade display, in Las Vegas, Nevada, on Jan. 10, 2024.
Steve Marcus | Reuters
Qualcomm described 2nd-quarter earnings on Wednesday that surpassed Wall Road expectations, and furnished a potent tutorial for the existing quarter.
Shares rose about 4% in extended investing.
Here’s how it did vs . LSEG consensus estimates for the quarter finished March 24:
- Earnings for each share: $2.44 altered vs. $2.32 predicted
- Revenue: $9.39 billion adjusted vs. $9.34 billion anticipated
Web earnings during the quarter was $2.33 billion, or $2.06 for each share, vs . $1.7 billion, or $1.52 for each share, in the 12 months-earlier time period.
Qualcomm reported it predicted between $8.8 billion and $9.6 billion in product sales in the current quarter, better than Wall Avenue expectations of $9.05 billion. Analysts were wanting for earnings direction of $2.17 per share, versus the firm’s forecast of between $2.15 and $2.35.
Qualcomm’s most important organization is its handsets enterprise. It sells processors, modems and other pieces for smartphones — mostly Android products, but also some modem parts in iPhones.
Handset gross sales rose 1% 12 months-over-yr to $6.18 billion, signaling that the smartphone industry might be recovering just after a couple many years of article-covid slumping. Qualcomm termed out robust demand from customers for “premium tier” smartphones that demand the most sophisticated chips, primarily in China. Qualcomm mentioned that income from Chinese cell phone makers elevated 40% on an annual foundation all through the quarter.
Qualcomm calls the phones that use its ideal chips “AI-powered smartphones,” citing capabilities these kinds of as generative e mail completion, live translation, and virtual assistants that use the chips specialized “NPU” AI area. 1 this kind of cell phone is Samsung’s Galaxy S24 Extremely, which released before this yr.
The company’s automotive company, which sells chips to automakers, also confirmed signals of expansion, growing 35% on an annual basis to $603 million. The company’s so-termed “Online of Points” business enterprise — comprised of reduced-price chips and chips for digital actuality — contracted 11% calendar year-around-year to $1.24 billion.
Those people a few company strains are reported collectively as QCT, the company’s chip organization, which noticed a 1% yr-over-year revenue maximize to $8.03 billion. Qualcomm also highlighted
The firm’s licensing company, QTL, in which it collects service fees from firms that want to combine 5G or cellular technology into their solutions, rose 2% on an yearly basis to $1.32 billion.
Qualcomm mentioned it paid $895 million in dividends and repurchased $731 million in shares in the course of the quarter. Qualcomm elevated its quarterly dividend to 85 cents from 80 cents earlier.