Qualcomm's Q3 2023 Earnings: Handset Revenue Surge and Strong Guidance

Qualcomm in charts: Handsets revenue rises 12% Y/Y (NASDAQ:QCOM)

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Qualcomm gains as handsets boost Q3 results, guidance (NASDAQ:QCOM)

For the period ending June 23, Qualcomm said it earned an adjusted $2.33 per share as revenue rose 11.3% year-over-year to $9.39B. QCT sales rose 12% year-over-year to $8.07B. Revenue from handsets rose 12% year-over-year to $5.9B, while automotive sales jumped 87% to $811MM. Sales from its internet of things division fell 8.5% to $1.36B. Licensing revenue rose 3.5% year-over-year to $1.27B. A consensus of analysts expected the company to earn $2.26 per share on $9.22B during its fiscal third quarter. "We are excited about the launch of our Snapdragon X Series solutions for PCs that deliver leading performance, unmatched power efficiency and personalized AI experiences," CEO Cristiano Amon said in a statement. "This launch represents a significant milestone in our transformation from a communications company to a leading intelligent computing company." Looking to the fourth-quarter, Qualcomm said it expects to earn between $2.45 and $2.65 per share on an adjusted basis, with revenue forecast between $9.5B and $10.3B. Analysts were expecting $2.47 per share in earnings and $9.7B in revenue. The company will hold a conference call at 4:45 p.m. EST to discuss the results.

Earnings Summary: QCOM beats, issues strong guidance (NASDAQ:QCOM)

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Qualcomm Non-GAAP EPS of $2.33 beats by $0.07, revenue of $9.39B beats by $170M (NASDAQ:QCOM)

Qualcomm (NASDAQ:QCOM): Q3 Non-GAAP EPS of $2.33 beats by $0.07. Revenue of $9.39B (+11.3% Y/Y) beats by $170M. Revenue breakdown: QCT revenue of $8.07B, up 12% Y/Y. QTL $1.27B, up 3% Y/Y. Q3 Guidance: Revenue in the range of $9.5B-$10.3B vs $9.70B consensus, Non-GAAP EPS of $2.45-$2.65 vs $2.47 consensus. Press Release More on Qualcomm Qualcomm: Diversification Strategy Underway Qualcomm's Future: Potential Upside In Automotive And Edge AI The Rapidly Evolving World Of AI PCs Nvidia, AMD help power chip surge as sector awaits Qualcomm, Arm results Qualcomm Q3 Preview: Focus on Huawei restrictions

Qualcomm Q3 Earnings Highlights: Revenue Beat, EPS Beat, 'Strong Execution Of Our Growth And Diversification Strategy' - Qualcomm (NASDAQ:QCOM)

The company's automotive segment continues to grow revenue and saw several wins in the third quarter. Semiconductor stock Qualcomm Inc QCOM reported third-quarter financial results after the market close Wednesday. Here are the key highlights. What Happened: Qualcomm reported third-quarter revenue of $9.4 billion, up 11% year-over-year. The total beat a Street consensus estimate of $9.22 billion, according to data from Benzinga Pro. The company reported earnings per share of $2.33, beating a Street estimate of $2.25. By segment, the company reported $8.1 billion in revenue for QCT and $1.3 billion for QTL, up 12% and 3% year-over-year, respectively. QCT revenue was broken down as follows: Handsets: $5.9 billion, +12% year-over-year Auto: $811 million, +87% year-over-year IoT: $1.36 billion, -8% year-over-year The company said it secured more than 10 new design wins for automotive in the third quarter. "Our third quarter results reflect strong execution of our growth and diversification strategy, with QCT quarterly revenues and EBT margins at the high end of guidance," Qualcomm CEO Cristiano Amon said. Read Also: Qualcomm Q3 Earnings Preview: AI, Auto, Smartphones Top Items To Watch, Analyst Says 'Share Price Pull-Back Offers Entry Point' What's Next: Qualcomm said it will announce its new dedicated product roadmap for industrial IoT in the coming months. "We are excited about the launch of our Snapdragon X Series solutions for PCs that deliver leading performance, unmatched power efficiency and personalized AI experiences," Amon said. "This launch represents a significant milestone in our transformation from a communications company to a leading intelligent computing company." Guidance from Qualcomm calls for fourth-quarter revenue in a range of $9.5 billion to $10.3 billion. The company is guiding for fourth-quarter earnings per share in a range of $2.45 to $2.65. By segment, guidance calls for QCT revenue in a range of $8.1 billion to $8.7 billion and QTL revenue in a range of $1.35 billion to $1.55 billion. QCOM Price Action: Qualcomm shares gained 8.39% in Wednesday's regular trading session, closing at $180.95 versus a 52-week trading range of $104.33 to $230.63. Read Next: Qualcomm Stock Experiences Strong Bearish Trend Ahead Of Q3 Earnings Report Photo courtesy of Qualcomm. Market News and Data brought to you by Benzinga APIs

Qualcomm beats estimates and phone chip sales are up 12%

Qualcomm reported fiscal third-quarter earnings on Wednesday that beat Wall Street expectations, particularly for sales, and provided strong guidance for the current quarter. Qualcomm stock rose over 4% in extended trading. Here's how Qualcomm did versus LSEG consensus estimates for the quarter ending in June 23: Net income during the quarter was $2.13 billion, or $1.88 per share, versus $1.8 billion, or $1.60 per share in the year-ago period. Qualcomm said it expected between $9.5 billion and $10.3 billion in sales in the current quarter, compared to Wall Street expectations of $9.71 billion. Analysts were looking for earnings guidance of $2.45, versus the company's forecast of between $2.38 and $2.58. Qualcomm's biggest and most important business is processors and modems for smartphones, which it calls its handsets business. The summer months are traditionally a slower part of the annual cycle for smartphones, because most new models launch in the fall. Handset sales rose 12% on a year-over-year basis to $5.9 billion in revenue, in line with analyst estimates from StreetAccount, which suggests that a deep slump in smartphone sales over the past two years is abating. Qualcomm is also framing its most advanced Snapdragon chips as necessary for "AI smartphones," such as recent Samsung models, which can run some generative AI tasks like creating images. Automotive chips remains small for Qualcomm but the company sees placing more software and semiconductors into cars as one of its strongest opportunities for growth and diversification. Automotive revenues rose 87% on an annual basis to $811 million. Analysts polled by StreetAccount were looking for $641.7 million. The company sells chips for lower-cost devices as well as Meta's Quest headsets in a business it calls "Internet of Things." The line also includes revenues from the company's new PC chip for Windows laptops, called Snapdragon X Elite, which it launched alongside Microsoft during the quarter. CEO Cristiano Amon hailed the Snapdragon X launch as a "milestone" in Qualcomm's efforts to diversify. Still, Qualcomm said IoT revenue fell 8% on an annual basis to $1.4 billion, which beat StreetAccount expectations of $641.7 million. Those three hardware lines are reported together as QCT, the company's chip business, which in total reported $8.1 billion in sales, up 12% year-over-year. Qualcomm also collects licensing fees from companies that integrate 5G or other cellular technologies into their products, reported as QTL sales. Licensing revenue only rose 3% on an annual basis to $1.3 billion. Qualcomm said it paid $949 million in dividends and repurchased 7 million shares of stock for $1.3 billion during the quarter.