Qualcomm (QCOM) earnings This fall 2021

Qualcomm inventory rose greater than 6% at one level in prolonged buying and selling on Wednesday after the corporate reported its fiscal fourth-quarter earnings that exceeded analyst expectations.

Qualcomm’s income additionally beat Wall Road expectations regardless of a world chip scarcity, pushed by a 56% year-over-year increase in smartphone chip gross sales.

This is how Qualcomm did versus Refinitiv consensus expectations:

• EPS: $2.55, adjusted, vs. $2.26 anticipated, up 76% year-over-year.
• Income: $9.3 billion, adjusted, vs. $8.86 billion anticipated, up 43% year-over-year.

Qualcomm mentioned it anticipated between $10 billion and $10.8 billion in gross sales within the present quarter, greater than the $9.68 billion anticipated by analysts.

QCT, Qualcomm’s chip enterprise, reported $7.7 billion in income, up 56% year-over-year. The corporate attributed the expansion to sturdy demand for chips for smartphones and handsets.

The expansion in Qualcomm’s chip division comes throughout a interval of provide points for a lot of semiconductors wanted to construct computer systems and different gadgets. It exhibits Qualcomm has weathered the worldwide scarcity which has harm corporations like Intel, AMD, and Apple, and that its technique to make use of a number of chip factories, or foundries, has resulted in a stronger pipeline of chip provide.

Qualcomm’s IoT enterprise, which produces low-power chips to attach different gadgets to the web, and is a part of QCT, grew 66% to $1.5 billion. RF front-end chips, that are required to hook up with 5G networks, grew 45% to $1.24 billion.

Qualcomm’s handset enterprise was the second strongest rising product class within the quarter ending in December, with $4.69 billion in gross sales. Qualcomm expects to offer chips for as many as 550 million 5G smartphones in 2022, a slight downward revision from its earlier prediction.

Qualcomm’s automotive enterprise stays the corporate’s smallest product class for chips. It grew 44% to $270 million, though the corporate introduced a number of partnerships with automakers akin to GM through the quarter.

QTL, the corporate’s worthwhile expertise licensing division, was solely up 3% on an annual foundation to $1.55 billion in gross sales.

Qualcomm mentioned it repurchased $1.54 billion in its personal shares through the quarter, and paid $768 million in dividends.