On Wednesday, Qualcomm reported fourth-quarter earnings that surpassed predictions for sales and earnings, despite major year-over-year decreases, and provided a robust outlook for the present quarter.
On Wednesday, Qualcomm reported quarterly earnings that exceeded analysts' expectations for sales and earnings, with the company's stock rising more than 3% in after-hours trading. Per LSEG (formerly Refinitiv) consensus estimates, the chipmaker made $2.02 in adjusted earnings per share (EPS) against the projected $1.91; and reported adjusted revenue of $8.67 billion against the estimated $8.51 billion.
For the current quarter, Qualcomm expects adjusted EPS of between $2.25 and $2.45 on between $9.1 billion and $9.9 billion of sales, which slightly exceeds the LSEG consensus of $2.23 per share and $9.2 billion in revenue.
Net income for the quarter was $1.49 billion - or $1.32 per share - a 48% decrease from the same period last year. Revenue during the quarter also decreased 24% year-over-year, bringing the total adjusted revenue for Qualcomm's fiscal year to $35.83 billion, a 19% decrease from the previous year.
Qualcomm's handset chip sales, which are reported as part of QCT - the company's largest division selling processors - fell 27% to $5.46 billion compared to analysts' expectations of $5.34 billion. Automotive, a promising business for Qualcomm, grew 15% year-over-year to $535 million and beat Wall Street estimates. The company's Internet of Things business, including chips for Meta's Quest headsets, dropped 31% to $1.38 billion; and QTL, its profitable licensing business, reported $1.26 billion in sales, a 12% decrease from last year.
During the quarter, Qualcomm spent $400 million on share repurchases and $0.9 billion on dividends. The chipmaker also recently announced new Android and Windows PC chips with AI capabilities, and CEO Cristiano Amon underscored the company's roadmap for "generative AI and mobile computing performance" in a statement.
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