Qualcomm CEO Cristiano Amon responds to a concern for the duration of a keynote dialogue at CES 2024, an once-a-year customer electronics trade display, in Las Vegas, Nevada, on Jan. 10, 2024.
Steve Marcus | Reuters
Qualcomm reported second-quarter earnings on Wednesday that surpassed Wall Street anticipations, and furnished a sturdy guideline for the latest quarter.
Shares rose about 3% in prolonged buying and selling.
Here is how it did as opposed to LSEG consensus estimates for the quarter ending in March:
- Earnings for each share: $2.44 altered vs. $2.32 predicted
- Revenue: $9.39 billion altered vs. $9.34 billion expected
Internet earnings all through the quarter was $2.33 billion, or $2.06 for each share, compared to $1.7 billion, or $1.52 for every share, in the calendar year-previously interval.
Qualcomm reported it predicted amongst $8.8 billion and $9.6 billion in product sales in the present-day quarter, better than Wall Road expectations of $9.05 billion. Analysts have been looking for earnings advice of $2.17 per share, as opposed to the firm’s forecast of among $2.15 and $2.35.
Qualcomm’s most essential business enterprise is its handsets company. It sells processors, modems and other parts for smartphones — generally Android devices, but also some modem components in iPhones.
Handset income rose 1% yr-about-calendar year to $6.18 billion, signaling that the smartphone market place might be recovering after a couple years of submit-covid slumping. Qualcomm referred to as out robust desire for “quality tier” smartphones that involve the most superior chips.
Qualcomm phone calls the telephones that use its ideal chips “AI-driven smartphones,” citing characteristics this sort of as generative electronic mail completion, reside translation, and digital assistants that use the chips specialized “NPU” AI area. One particular these telephone is Samsung’s Galaxy S24 Ultra, which released earlier this calendar year.
The company’s automotive organization, which sells chips to automakers, also showed signs of development, mounting 35% on an annual foundation to $603 million. The firm’s so-called “Internet of Items” enterprise — comprised of decreased-price chips — contracted 11% yr-in excess of-12 months to $1.24 billion.
Those a few enterprise traces are described jointly as QCT, the firm’s chip company, which noticed a 1% year-around-12 months gross sales boost to $8.03 billion. Qualcomm also highlighted
The firm’s licensing business enterprise, QTL, in which it collects fees from providers that want to combine 5G or cellular know-how into their products, rose 2% on an annual foundation to $1.32 billion.
Qualcomm said it compensated $895 million in dividends and repurchased $731 million in shares all through the quarter.
