Qualcomm reported second-quarter earnings Wednesday, beating Wall Avenue expectations for gross sales and earnings, and driving the refill over 4% in prolonged buying and selling.
This is how Qualcomm did versus Refinitiv consensus expectations:
- EPS: $3.21, adjusted, versus $2.91 anticipated, up 69% year-over-year
- Income: $11.16 billion, adjusted, versus $10.60 billion anticipated, up 41% year-over-year
- QCT (chip gross sales): $9.55 billion versus $8.86 anticipated per StreetAccount, up 52% year-over-year
- QTL (know-how licensing): $1.58 billion versus $1.55 anticipated per StreetAccount, down 2% year-over-year
Qualcomm stated it anticipated between $2.75 and $2.95 in earnings per share within the third quarter on about $10.9 billion in gross sales. The corporate’s forecast is stronger than the $9.98 billion gross sales steering that Wall Avenue anticipated.
Qualcomm makes most of its cash from promoting processors and modems for smartphones and thru licensing know-how for connecting to mobile networks. Its robust outcomes on Wednesday come amid wider market skepticism about chip firms in 2022, which benefited from robust demand and restricted provide through the Covid-19 pandemic.
Underneath CEO Cristiano Amon, Qualcomm has emphasised to traders that it may be a chip supplier for a lot of extra markets and might diversify away from its bread and butter handset chip enterprise.
All 4 of Qualcomm’s main chip markets grew through the quarter ending in March.
Handsets, the largest marketplace for Qualcomm chips, grew 56% on an annual foundation to $6.33 billion, suggesting {that a} potential slowdown in smartphone gross sales in an inflationary surroundings has but to hit the first Android chipmaker.
RF front-end, a enterprise specializing in promoting a component that permits 5G connections, grew 28% to $1.16 billion.
The automotive market section stays small when it comes to gross sales at the moment, however the firm stays optimistic that it is placing partnerships with automakers and suppliers that may result in extra development down the road. Qualcomm reported $339 million in automotive gross sales, up 41% yearly. Income from Veoneer wasn’t included in March quarter, though Qualcomm is closing the acquisition within the present quarter.
The IoT enterprise, which makes low-power and low-cost chips, reported 61% development to $1.72 billion.
Qualcomm stated it paid $764 million in money dividends and repurchased $951 million value of its shares through the quarter.
