Qualcomm Inc., a leading semiconductor and telecommunications equipment company, reported better-than-expected earnings in its recent quarterly report, causing its stock to rise in after-hours trading. The company’s net income for the fiscal first quarter was $2.8 billion, or $2.46 per share, compared to $2.2 billion, or $1.98 per share, in the same period last year. On an adjusted basis, Qualcomm earned $2.75 per share, surpassing analysts’ estimates of $2.37 per share.
Revenue also exceeded expectations, increasing to $9.94 billion from $9.46 billion in the previous year. Analysts had forecasted revenue of $9.51 billion. Notably, Qualcomm’s QCT semiconductor business saw a 7% revenue growth, reaching $8.4 billion, surpassing estimates of $8.1 billion. However, the QTL licensing segment experienced a 4% decline in revenue to $1.5 billion, although it still exceeded the consensus view of $1.4 billion.
Qualcomm CEO Cristiano Amon expressed optimism about the company’s future, stating that they are building on their momentum with their Snapdragon platforms and technological advancements in connectivity, computing, and on-device generative AI. These improvements extend across various sectors, including handsets, automotive, PC, extended reality, and the industrial Internet of Things.
Following the favorable earnings report, Qualcomm’s stock rose approximately 3% in after-hours trading. Looking ahead, the company expects revenue between $8.9 billion and $9.7 billion for the March quarter, surpassing the FactSet consensus of $9.3 billion. QCT revenue is projected to range from $7.6 billion to $8.2 billion, outperforming analysts’ estimates of $7.9 billion for that segment.
For the fiscal second quarter, Qualcomm anticipates adjusted earnings per share of $2.20 to $2.40, with the midpoint of that range surpassing the FactSet consensus of $2.25. The company remains confident in its future prospects, buoyed by its strong financial performance and the continuous development of innovative technologies.
In conclusion, Qualcomm’s exceptional quarterly earnings report has exceeded analysts’ expectations, driving an increase in the company’s stock value. With robust revenue growth in its semiconductor business and optimistic projections for future quarters, Qualcomm is well-positioned to maintain its industry leadership in various sectors, backed by cutting-edge advancements in technology.
