Stock in Qualcomm has been steadily increasing as the company said that it is going to sell millions of chips for 5G mobile devices as people upgrade their phones.
This means that revenue was estimated to be millions of dollars more than investors.
(Ticker: QCOM) The stock gained more than 10% in Wednesday’s later session, rising 2.8% to close at $ 128.97.
Qualcomm CEO Steve Mollenkauf said, “Our fiscal fourth quarter results show that our investments in 5G are flourishing and showing gains in our licensing and product businesses.”
The chip maker, known for wireless communications chips for smartphones, reported net income of $ 2.96 billion in the fiscal fourth quarter, with a net profit of $ 506 million, or 42 cents per share, compared to $ 2.58 a year earlier. Share was.
Adjusted for factors such as acquisition-related fees and investment losses, earnings were $ 1.45 per share compared to 78 cents in the year-ago quarter.
Revenue rose 73% to $ 8.45 billion from $ 4.81 billion a year earlier. Sales in the fourth quarter included $ 1.81 billion, or $ 1.37 a share, from a settlement of intellectual property disputes with Huawei and royalties for sales between March 2020 and June 2020, under a new agreement with the company had gone. Without the settlement agreement, sales were $ 6.5 billion.
Analysts expected adjusted income of $ 1.20 on sales of $ 5.94 billion excluding settlement revenue. GAAP’s earnings were expected to be $ 1.81 a share.
For the first quarter, Qualcomm said it expected adjusted earnings of $ 1.95 to $ 2.15 per share, and sales of $ 7.8 billion to $ 8.6 billion. The company said it expected GAAP earnings of $ 1.67 to $ 1.87 per share. Wall Street expected adjusted earnings in the first quarter from sales of $ 1.66 per share and $ 7.15 billion.
Qualcomm said that with the financial statements released on Wednesday, the company would break down its revenue for its CDMA technologies segment in terms of industries or applications where its products are used: handsets, radio frequency front-end, automotive, and Internet talk. In early 2021, Qualcomm stated that it would not report revenue for the mobile station model segment.
The stock has been on a tear this year, gaining 46%
The index rose by 29%. In the summer, an appeals court ruled a pre-government ruling against Qualcomm, related to the decision not to sell chips to companies.
(AAPL) until they licensed its patent.
Write Max A. Cherney at [email protected]