QCOM Is Back — November 1, 2023

Locator: 45899TECH.

QCOM is back. Link here.

Qualcomm reported fiscal fourth-quarter earnings on Wednesday that beat expectations for sales and earnings, despite big year-over-year declines, and gave a strong forecast for the current quarter. 

Qualcomm stock rose over 3% in extended trading. 

Here’s how the chipmaker did for the quarter ended September 24, 2023, consensus expectations:

• EPS: $2.02, adjusted, vs. $1.91 expected 
• Revenue: $8.67 billion, adjusted, vs. $8.51 billion expected 

Qualcomm said it expected adjusted earnings of between $2.25 and $2.45 per share on between $9.1 billion and $9.9 billion of sales in the current quarter, versus consensus expectations of $2.23 per share of earnings on $9.2 billion of sales. 

At the midpoint of Qualcomm’s guidance, adjusted revenue will grow slightly during the current quarter compared to last year. 

Net income during the quarter was $1.49 billion or $1.32 per share, a 48% decrease from last year’s $2.87 billion or $2.54 per share. Revenue during the quarter declined 24% year over year from $11.39 billion last year. Overall adjusted revenue for Qualcomm’s fiscal year fell 19% from last year to $35.83 billion. 

Qualcomm’s fortunes are tied to the smartphone industry, which has been in a slump for nearly two years after the Covid pandemic created a boom in sales. The company makes the processors at the heart of most high-end Android devices and many lower-end phones as well.