On Wednesday, Qualcomm Incorporated traded higher in its fiscal fourth quarter, exceeding Wall Street’s projections.
Its stock price increased by 4.27% to $172.99 per piece on November 06’s Asian afternoon session. More importantly, it is expected to climb further by 6.31% to $183.90 a share in the market after hours.
The company’s earnings per share (EPS) bounded to $2.69, surpassing analysts’ outlook of $2.56 and the $2.33 figure in the last quarter.
In addition, its revenue spiked to $10.24 billion, beating the forecasts of experts at $9.90 billion and the previous $9.39 billion data. Correspondingly, Qualcomm registered a total revenue of $33.19 billion in 2024, rising by 9.00% from last year.
Moreover, the multinational corporation’s net income came at $2.92 billion or $2.59 per share. Subsequently, this is a sharp leap from the $1.49 billion in 2023 or $1.23 a share.
Also, handset chip sales of the semiconductor maker were up to $6.10 billion. According to Chief Financial Officer Akash Palkhiwala, this segment generated more than 20.00% year-on-year growth in Android revenues.
Meanwhile, Qualcomm announced that its board authorized an additional $15.00 billion in share buybacks. It paid out dividends worth $947.00 million after reacquiring shares amounting to $1.30 billion.
Chip Sales in China Boosts Qualcomm Results
Based on reports, Qualcomm incurred gains in chip sales to various flagship smartphones in China.
Experts also indicated that the company’s forecast received support from brands, including Oppo, Vivo, and Xiaomi.
Additionally, Qualcomm supplies the largest number of mobile chips and derives 46.00% of its revenue from China.
On the other hand, it warned investors that Apple may stop buying its products as it would start working on its modern chip. For this reason, Wall Street is watching if the company can offset losses from the iPhone maker with its plans to venture into artificial intelligence.
