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Home / Business / Qualcomm shares rebounded after earnings overtook

Qualcomm shares rebounded after earnings overtook



Qualcomm’s signature is seen at the second China International Imports Exhibition (CIIE) in Shanghai, China November 6, 2019. REUTERS / Aly Song

Song Aly | Reuters

Shares in Qualcomm extended their double-digit gain Thursday morning after the company announced a strong fourth-quarter financial situation that exceeded Wall Street expectations.

The company̵

7;s shares have risen more than 13%.

“We believe the stars are in line with Qualcomm, with a multi-year global 5G cycle starting to accelerate, the full benefits from royalties from all major OEMs increasing in semiconductor content. and price and technology lead, “Bank of America analysts wrote in a fifth note. OEM is the original equipment manufacturer. Analysts increased their price target to $ 180 from $ 165.

Qualcomm said it will benefit from the proliferation of 5G networks and handsets. One of its 5G modem chips is included in Apple’s iPhone 12, the first iPhone with 5G capabilities. Qualcomm said Wednesday that it expects about 200 million 5G smartphones to be shipped by 2020, and around 500 million 5G smartphones to be shipped by 2021.

The company also gave guidance for the fiscal first quarter ending December. It said it expected revenue from $ 7.8 billion to $ 8.6 billion and adjusted its EPS to be around 1. , $ 95 to $ 2.15.

“With global smartphone stocks steadily recovering, Qualcomm is well-positioned to benefit from a long-term 5G investment cycle and we expect high earnings from F2022 onwards,” analysts by Canaccord Genuity wrote in a Wednesday note. The company increased its price target to $ 175 from $ 150.

Qualcomm reports $ 1.45 adjusted earnings per share on $ 6.5 billion adjusted revenue, compared with Wall Street’s estimated $ 1.17 in earnings per share on 5 revenue , 93 billion dollars.

CNBC’s Michael Bloom contributed to this report.

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