Qualcomm released its fiscal first-quarter results on Wednesday, surpassing analysts’ expectations with a 16% increase in handset chip sales compared to the previous year. However, Qualcomm shares dipped over 1% in after-hours trading.
Here are the highlights for the quarter ending Dec. 24, based on consensus estimates from LSEG:
– Adjusted earnings per share: $2.75, exceeding the expected $2.37
– Adjusted revenue: $9.92 billion, higher than the anticipated $9.51 billion
For the current quarter, Qualcomm anticipates adjusted earnings between $1.73 and $1.93 per share on revenue ranging from $8.9 billion to $9.7 billion. Consensus estimates projected earnings of $2.25 per share on revenue of $9.3 billion.
Quarterly net income climbed 24% to $2.77 billion, or $2.48 per share, compared to $2.24 billion, or $1.98 per share, in the previous year.
Although Qualcomm is renowned for its smartphone chips, including modems and processors for high-end Android devices, CEO Cristiano Amon has expanded the company’s focus to include markets beyond smartphones such as PCs, automobiles, and virtual reality headsets.
Despite the smartphone market’s recent decline, Qualcomm saw a 16% increase in handset chip shipments, totaling $6.69 billion during the December quarter. CEO Amon expressed optimism about the stabilization of the Android market following corrections in 2023.
Qualcomm’s Internet of Things division, supplying chips for Meta’s virtual reality headsets, experienced a 32% decline in sales to $1.13 billion. However, its automotive chip sales surged by 31% to $589 million annually.
On the other hand, QTL, the licensing arm, reported a 4% annual revenue decrease, amounting to $1.46 billion. Amon disclosed that Apple had extended its patent licensing agreement with Qualcomm through March 2027.
