Qualcomm CEO Cristiano Amon answers a matter during a keynote session at CES 2024, an annual consumer electronics trade show, on January 10, 2024 in Las Vegas, Nevada.
Steve Marcus | Reuters
Qualcomm reported Second quarter results on Wednesday, beating Wall Street expectations and providing strong guidance for the present quarter.
Shares rose about 4% in prolonged trading.
Here’s the way it performed in comparison with LSEG consensus estimates for the quarter ended March 24:
- Earnings per share: $2.44 adjusted versus $2.32 expected
- revenue: $9.39 billion adjusted versus $9.34 billion expected
Net income for the quarter was $2.33 billion, or $2.06 per share, compared with $1.7 billion, or $1.52 per share, within the year-ago period.
Qualcomm said it expected revenue between $8.8 billion and $9.6 billion for the present quarter, above Wall Street’s expectations of $9.05 billion. Analysts were expecting earnings of $2.17 per share, while the corporate forecast between $2.15 and $2.35.
Qualcomm’s most significant business is its cell phone business. It sells processors, modems and other parts for smartphones — mostly Android devices, but additionally some modem parts in iPhones.
Mobile phone sales rose 1% year-on-year to $6.18 billion, suggesting the smartphone market could also be recovering after several years of post-coronavirus slump. Qualcomm pointed to strong demand for “premium smartphones” that require essentially the most advanced chips, particularly in China. Qualcomm said Chinese phone makers’ revenue rose 40% on an annual basis throughout the quarter.
Qualcomm calls the phones that use its best chips “AI-powered smartphones,” pointing to features like generative email completion, live translation and virtual assistants that leverage the chips’ specialized “NPU” AI division . One such phone is the Samsung Galaxy S24 Ultra, which was launched earlier this 12 months.
The company’s automotive business, which sells chips to automakers, also showed signs of growth, rising 35% on an annual basis to $603 million. The company’s so-called “Internet of Things” business – consisting of lower-cost chips and virtual reality chips – shrank 11% 12 months over 12 months to $1.24 billion.
These three divisions are reported together as QCT, the corporate’s chip business, which reported a 1% year-over-year increase in revenue to $8.03 billion. Qualcomm also highlighted
The company’s licensing business, QTL, through which it collects fees from firms in search of to integrate 5G or cellular technology into their products, rose 2% annually to $1.32 billion.
Qualcomm said it paid $895 million in dividends and repurchased $731 million price of stock throughout the quarter. Qualcomm increased its quarterly dividend to 85 cents from 80 cents previously.
