Qualcomm shares are steadily rising after the company said it will sell millions of chips for 5G mobile devices as people upgrade their phones.
That means hundreds of millions of dollars in revenue than investors expected.
(ticker: QCOM) shares rose more than 10% in after-hours trading on Wednesday, after closing up 2.8% to $ 128.97.
“Our Q4 financial results demonstrate that our investments in 5G are paying off and show an interest in licensing and our product sales,” Qualcomm CEO Steve Mollenkopf said.
The chip maker, best known for its wireless communication chips for smartphones, reported net earnings in the fiscal fourth quarter of $ 2.96 billion, or $ 2.58 per share, compared with gains net profit of $ 506 million, or 42 cents per share, a year ago.
Adjusted for factors such as fees associated with acquisitions and investment decline, earnings were $ 1.45 a share, compared with 78 cents in the previous quarter.
Revenue increased 73% to $ 8.45 billion from $ 4.81 billion a year ago. Fourth-quarter revenue included $ 1.81 billion, or $ 1.37 per share, obtained from the settlement of an intellectual property dispute with Huawei and sales royalties from March 2020 to June 2020, under a new agreement with the company. Without a settlement, revenue is $ 6.5 billion.
The analysts had expected adjusted earnings of $ 1.20 a share on $ 5.94 billion in revenue, excluding settlement revenue. Expected GAAP earnings are $ 1.81 per share.
For the fiscal first quarter, Qualcomm said it expects adjusted earnings from $ 1.95 to $ 2.15 a share, and revenue from $ 7.8 billion to $ 8.6 billion. dollars. The company says it predicts earnings from GAAP between $ 1.67 and $ 1.87 a share. Wall Street expects first quarter adjusted earnings of $ 1.66 per share and sales of $ 7.15 billion.
Qualcomm says starting with its financial statements released Wednesday, it will divide revenue by its CDMA technology segment in terms of industries or applications in which its products are used: handheld devices. hands, radio frequency terminal, automobile and internet of many things. Beginning in fiscal 2021, Qualcomm said it would no longer report sales for the mobile station segment.
Shares have fallen this year, up 46% due
The index increased by 29%. In the summer, an appellate court issued an earlier antitrust ruling against Qualcomm regarding its decision not to sell chips to companies like
(AAPL) unless they also patent it.
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