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Mobile chipmaker Qualcomm reported strong earnings on Wednesday night, pushing shares higher after hours of trading.
The time of dreams
Investors applauded
Qualcomm
reported healthy profits and broken sales on Wednesday night.
The mobile chip maker reminded investors that it has other big companies growing beyond handsets. Qualcomm (ticker: QCOMM) plans to reach $ 10 billion in annual revenue in 2021 for chips used for the Internet of Things (IoT) and industrial applications, among other uses.
“Our solutions are powering the connected intelligent edge that enables the cloud economy, and we are seeing unprecedented demand for our technologies as the pace of digital transformation accelerates,” CEO Cristiano Amon said in a statement. hurry.
Qualcomm stock rose 2.3% in the extended session on Wednesday, after closing with a gain of 1.1% to $ 142.44.
The chipmaker reported third-quarter net income of $ 2 billion, or $ 1.77 per share, from $ 845 million, or 74 cents per share, a year ago. Adjusted for stock compensation, among other things, earnings were $ 1.92 per share last quarter and revenue rose 65% to $ 8.1 billion.
Analysts expected earnings of $ 1.69 per share and revenue of $ 7.6 billion, both of which are non-GAAP figures; Qualcomm reported non-GAAP revenue of $ 8 billion.
Qualcomm said fiscal third quarter revenue for its chip-based hardware segment increased 70% to $ 6.5 billion. The segment includes its handset sales, which accounted for $ 3.9 billion in third quarter revenue, its radio frequency, automotive and IoT chips. Revenue from the company’s licensing activities increased 43% to $ 1.5 billion.
For the fiscal fourth quarter, Qualcomm expects adjusted earnings per share of $ 2.15 to $ 2.35, on revenue of $ 8.4 to $ 9.2 billion. For the fiscal fourth quarter, analysts modeled non-GAAP EPS of $ 2.07, on revenue of $ 8.5 billion.
Investors had high expectations of chipmakers ahead of the June quarter results, amid a crippling chip shortage around the world. The overwhelming demand has given companies the opportunity to dramatically increase revenues and profits as the global thirst for semiconductors continues to seemingly unfulfilled.
Write to Max A. Cherney at [email protected]
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