Wireless technology company Qualcomm (QCOM) has reported Fiscal fourth-quarter financial results that beat Wall Street estimates on the top and bottom lines.
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The company announced earnings per share (EPS) of $3, which topped the $2.88 consensus expectation of analysts. Revenue of $11.27 billion beat the $10.79 billion that analysts had penciled in for the company. Sales were up 10% from a year earlier.
Looking ahead, Qualcomm said it expects revenue of $11.8 billion to $12.6 billion, or $12.2 billion at the midpoint, for the current quarter. That outlook exceeds the average analyst estimate of $11.62 billion. Earnings are expected to be in a range of $3.30 to $3.50, while analysts forecast $3.30 per share in profit.
Qualcomm’s income statement. Source: The Fly
Mobile Phone Chips
Qualcomm has long dominated the market for mobile phone microchips, including for high-end devices such as Apple’s (AAPL) iPhone. However, Qualcomm expects to lose Apple as a customer in coming years, and has been working to diversify its business by making microchips for other devices such as personal computers (PCs) and smart glasses made by Meta Platforms (META).
Qualcomm recently announced that it will release new artificial intelligence (AI) accelerator chips and processors, entering a market that’s dominated by Nvidia (NVDA). Qualcomm reported that revenue in its handsets business rose 14% to $6.96 billion in its latest quarter. Sales in the automotive unit increased 17% and sales in its Internet of Things (IoT) division rose 7% from a year earlier.
Is QCOM Stock a Buy?
Qualcomm’s stock has a consensus Moderate Buy rating among 10 Wall Street analysts. That rating is based on seven Buy and three Hold recommendations assigned in the last three months. The average QCOM price target of $195.00 implies 7.28% upside from current levels. These ratings could change after the company’s financial results.
