Key Takeaways
- Qualcomm’s earnings rose 25% to $2.67 billion in Q3, with a revenue increase of 10% to $10.4 billion.
- Automotive electronics and IoT segments reported strong growth, generating $984 million and $1.7 billion, respectively.
- The company forecasts EPS for Q4 between $2.23 and $2.43 but saw a 5% drop in shares after trading closed.
Quarterly Earnings Overview
Qualcomm announced Wednesday that its third fiscal quarter, ending June 19, marked a significant earnings increase of 25%, reaching $2.67 billion ($2.43 per share), compared to $2.13 billion ($1.88 per share) in the same quarter last year. Revenue also rose by 10%, climbing to $10.4 billion from $9.4 billion.
Cristiano Amon, president and CEO, emphasized the robust growth in their QCT Automotive and IoT sectors, reinforcing the company’s diversification strategy and commitment to achieving long-term revenue goals. He stated, “Our leadership in AI processing, high-performance and low-power computing, and advanced connectivity positions us to become the industry platform of choice as AI gains scale at the edge.”
The report highlighted impressive figures for various segments: Automotive electronics generated $984 million, while Internet of Things (IoT) products contributed $1.7 billion. Revenue from technology licensing amounted to $1.32 billion. However, the mobile phone electronics segment remained the dominant contributor, bringing in $6.3 billion in revenue.
Looking ahead, Qualcomm has projected fourth quarter earnings per share between $2.23 and $2.43. Despite the positive earnings report, the company’s shares fell by 5% to $151.10 in after-hours trading.
In summary, Qualcomm’s strategic focus on automotive and IoT solutions appears to be bolstering its financial performance, even as it navigates the competitive landscape of technology licensing and mobile communications.
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