Qualcomm fiscal Q3 revenue, EPS beat expectations, outlook higher, shares rise

Mobile chip giant Qualcomm this afternoon reported Q4 revenue and profit that topped analysts’ expectations, and an outlook for the current quarter that was higher as well. 

The report sent Qualcomm shares up 3% in late trading. 

CEO Cristiano Amon remarked that “in addition to leading the 5G transition,” Qualcomm is “on pace to deliver $10 billion of annual revenues across RF front-end, IoT and Automotive as our business continues to diversify.”

Added Amon, “Our solutions are fueling the connected intelligent edge that is enabling the cloud economy, and we are seeing unprecedented demand for our technologies as the pace of digital transformation accelerates.”

Revenue in the three months ended in June rose 63%, year over year, to $7.99 billion, yielding a net profit of $1.92 a share, excluding some costs.

Analysts had been modeling $7.53 billion and $1.91 per share. 

The adjusted, non-GAAP revenue number excludes Qualcomm’s QSI, or “Qualcomm Strategic Initiatives,” segment, which the company plans to divest.

Within the results, sales from Qualcomm’s chip business, “QCT,” rose 70%, year over year, to $6.47 billion, while revenue from the licensing division, “QTL,” rose by 43% to $1.5 billion.

Qualcomm’s sales into handsets rose 57% to $3.86 billion, while sales of radio frequency “front-end” chips more than doubled to $957 million. Sales into the automotive market and sales into the IoT market both rose by 83%, to $253 million and $1.399 billion, respectively. 

For the current quarter, the company sees revenue of $8.4 billion to $9.2 billion, and EPS in a range of $2.15 to $2.53. That compares to consensus for $8.46 billion and $2.03 profit per share.

That includes $7 billion to $7.5 billion of QCT chip sales.  

Article source: https://www.zdnet.com/article/qualcomm-fiscal-q3-revenue-eps-beat-expectations-outlook-higher-shares-rise/#ftag=RSSbaffb68