Wireless-chip leader Qualcomm (QCOM) late Wednesday crushed Wall Street’s targets for its fiscal third quarter and guided higher than estimates for the current period. Qualcomm stock jumped in extended trading.
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The San Diego-based company earned an adjusted $2.33 a share on sales of $9.39 billion in the quarter ended June 30. Analysts polled by FactSet had expected Qualcomm earnings of $2.25 a share on sales of $9.21 billion. On a year-over-year basis, Qualcomm earnings rose 25% while sales increased 11%.
For the current quarter, Qualcomm expects to earn an adjusted $2.55 a share on sales of $9.9 billion. That’s based on the midpoint of its guidance. Analysts were looking for earnings of $2.45 a share on sales of $9.69 billion. In the year-earlier period, Qualcomm earned an adjusted $2.02 a share on sales of $8.67 billion.
“Our third-quarter results reflect strong execution of our growth and diversification strategy,” Chief Executive Cristiano Amon said in a news release.
He added, “We are excited about the launch of our Snapdragon X Series solutions for PCs that deliver leading performance, unmatched power efficiency and personalized AI experiences. This launch represents a significant milestone in our transformation from a communications company to a leading intelligent computing company.”
Qualcomm Stock Extends Gains After Report
In after-hours trading on the stock market today, Qualcomm stock surged 6.5% to 192.78. During the regular session Wednesday, Qualcomm stock jumped 8.4% to close at 180.95 amid a semiconductor stock rally.
The company’s chip business accounted for 86% of its revenue in the June quarter. Qualcomm’s technology licensing business contributed the rest of its sales.
In its chip segment, handsets accounted for 73% of its revenue, followed by Internet of Things at 17% and automotive at 10%. In fiscal Q3, handset chip sales rose 12% year over year to $5.9 billion. Automotive chip sales jumped 87% to $811 million. But IoT chip sales dropped 8% to $1.4 billion.
Qualcomm stock is on the IBD Tech Leaders list.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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