QCOM Stock: Qualcomm Crushes March-Quarter Targets

Wireless chip leader Qualcomm (QCOM) late Wednesday pummeled Wall Street’s targets for its fiscal second quarter and guided higher for the current period. QCOM stock rose in extended trading.


The San Diego-based company earned an adjusted $ 3.21 a share on sales of $ 11.16 billion in the quarter ended March 27. Analysts polled by FactSet expected Qualcomm earnings of $ 2.95 a share on sales of $ 10.63 billion. On a year-over-year basis, Qualcomm earnings surged 69% while sales popped 41%.

Chief Executive Cristiano Amon credited the company’s strong performance to its diversification strategy and strong demand for its wireless and high-performance, low-power processors.

“We are well positioned to meet our long-term targets and enable the connected intelligent edge,” he said in a news release.

QCOM Stock Rises

In after-hours trading on the stock market today, QCOM stock advanced 4.3% to 140.91. During the regular session Wednesday, QCOM stock climbed 1.2% to close at 135.10.

Wireless chips for smartphones were the biggest driver of Qualcomm’s March-quarter growth. Revenue from handset chips jumped 56% to $ 6.33 billion in the period. Sales of chips for Internet of Things devices increased 61% to $ 1.72 billion. Revenue from chips for radio-frequency front-end applications rose 28% to $ 1.16 billion. And sales of automotive chips climbed 41% to $ 339 million.

Total chip sales rose 52% to $ 9.55 billion. Meanwhile, revenue from technology licensing dipped 2% to $ 1.58 billion in the fiscal second quarter.

For the current quarter, Qualcomm forecast adjusted earnings of $ 2.85 a share on sales of $ 10.9 billion. That’s based on the midpoint of its outlook. Wall Street had predicted Qualcomm earnings of $ 2.64 a share on sales of $ 10.03 billion in the fiscal third quarter.

QCOM stock ranks tenth out of 30 stocks in IBD’s fabless semiconductor industry group, according to IBD Stock Checkup. It has a so-so IBD Composite Rating of 72 out of 99. The Composite Rating scores a stock’s key growth metrics against all other stocks regardless of industry group.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.


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