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Wireless chip maker Qualcomm (QCOM) on Wednesday night easily beat Wall Street’s targets for its fiscal third quarter and rose for the current period. Qualcomm stock jumped in the extended trade.
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The San Diego-based company earned adjusted $ 1.92 per share on sales of $ 8.06 billion in the quarter ended June 27. Analysts expected Qualcomm to earn $ 1.68 per share on sales of $ 7.53 billion, according to FactSet. Year over year, Qualcomm’s profits soared 123% while sales jumped 65%.
The company’s chip business represented 80% of total sales in the June quarter. Of that, the lion’s share was for handsets. But it also manufactures chips for front-end RF, automotive and Internet of Things applications. The rest of Qualcomm’s activity concerns technology licenses.
“In addition to leading the 5G transition, we are poised to generate $ 10 billion in annual revenue in front-end RF, IoT and automotive as our business continues to diversify,” said Managing Director Cristiano Amon in a press release.
Qualcomm Overdue Stock Pops
He added, “Our solutions are powering the connected smart edge that enables the cloud economy, and we are seeing unprecedented demand for our technologies as the pace of digital transformation accelerates.
On the stock market today, Qualcomm shares climbed 2.2%, to nearly 145.50. In Wednesday’s regular session, Qualcomm stock rose 1.1% to 142.44.
Qualcomm stock has consolidated over the past 27 weeks with a buy point of 168.04, according to IBD MarketSmith charts.
For the current quarter, Qualcomm expects to earn adjusted $ 2.25 per share on sales of $ 8.8 billion. It’s based on the midpoint of his outlook. Wall Street had predicted Qualcomm’s earnings of $ 2.03 per share on sales of $ 8.46 billion. In the period of the previous year, Qualcomm earned $ 1.45 per share on sales of $ 6.5 billion.
AMD, others progress on profits
Other semiconductor stocks move on Wednesday’s results included Advanced micro-systems (AMD), Monolithic power systems (MPWR) and Silicon laboratories (SLAB).
AMD stock jumped 7.6% to 97.93 on Wednesday after the chip designer released a beat-and-raise earnings report Tuesday night. Its shares erupted from a cup base with handle at a buy point of 95.54, according to charts from MarketSmith.
Monolithic Power Systems stock jumped 5.8% to 431 on Wednesday after posting better-than-expected second quarter results. MPWR stock broke out of the 5% buy zone of its recent breakthrough on the news.
Silicon Labs stock rose 3.2% to 142.45 after its bullish second-quarter report on Wednesday morning.
Qualcomm stock ranks 13th out of 30 stocks in IBD’s factory-less semiconductor industry group. AMD stock is tied for first place in the group. Monolithic ranks third and Silicon Labs is # 16.
Follow Patrick Seitz on Twitter on @IBD_PSeitz for more articles on consumer technology, software, and semiconductor inventory.
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