Qualcomm on Wednesday, July 31, released information on the results of its operations for the third fiscal quarter.
The mentioned results exceeded the preliminary expectations that were common on Wall Street. Also, the figures released on Wednesday are a positive signal of favorable prospects for Qualcomm in the current fiscal quarter.
The company’s shares fell by 1% in extended trading. At the same time, the downward trajectory of the securities was fixed after the preliminary growth of value by 7%, which turned out to be short-term.
Qualcomm’s adjusted revenue for the third fiscal quarter was fixed at $9.39 billion. It is worth noting that the LSEG consensus forecast provided that the corresponding figure will amount to $9.22 billion.
Adjusted earnings per share for the third fiscal quarter were fixed at $2.33. The LSEG consensus forecast provided that this figure would be $2.25.
Qualcomm expects its sales in the money term to range from $9.5 billion to $10.3 billion in the current fiscal quarter. Expectations were widespread on Wall Street that this figure would reach $9.71 billion.
The main activity of Qualcomm, based in San Diego, California, is the production of processors and modems for smartphones. Summer is traditionally a kind of slowdown period for the annual smartphone cycle. This feature is explained by the fact that most of the new models of the mentioned devices will debut on the market in the fall.
The specified Qualcomm’s business recorded revenue of $5.9 billion for the third fiscal quarter. This indicator showed an increase of 12% compared to the result a year ago. The mentioned result corresponds to the preliminary estimates of analysts surveyed by StreetAccount. The specified revenue is evidence that the deep downturn in sales in the smartphone market that has been observed recently is starting to weaken.
Qualcomm is also engaged in the development of advanced Snapdragon chips, which are equipped with smartphones with artificial intelligence. These microcircuits are used in the latest Samsung smartphones, which can perform tasks involving the application of machine intelligence. One of these tasks, for example, is image generation.
Qualcomm chief executive officer Cristiano Amon says that artificial intelligence has expanded the scale of the premium tier.
Automotive chip manufacturing still has a small share of the company’s total earnings. At the same time, Qualcomm expects that the tendency to scale the introduction of software and semiconductors into cars is an opportunity for future growth and diversification. The revenue of the company’s appropriate business for the third fiscal quarter amounted to $811 million. This indicator increased by 87% year-on-year. At the same time, analysts surveyed by StreetAccount expected the revenue of the company’s specified business to be $641.7 million.
Qualcomm sells chips for low-cost devices and Meta’s Quest headsets as part of a business it calls the Internet of Things. Revenue in this area of the company’s activity for the third fiscal quarter amounted to $1.4 billion. The specified indicator fell by 8% year-on-year. Analysts surveyed by StreetAccount predicted that the revenue of the company’s mentioned business for the third fiscal quarter would reach $641.7 million.
Qualcomm also collects licensing fees from companies that integrate 5G or other cellular technologies into their products. The brand’s licensing revenue for the third fiscal quarter amounted to $1.3 billion, which is 3% higher than a year ago.
Also in the last fiscal quarter, the company paid dividends for $949 million and repurchased 7 million shares with a total value of $1.3 billion.
As we have reported earlier, Meta Shares Rise Amid Earnings Report.
