Qualcomm
reported higher revenue than expected and gave an optimistic vision for AI features on phones this year.
Its stock rose 1.7%, to $148.51, on Wednesday but later fell modestly in after-hours trading.
For the December quarter, Qualcomm reported adjusted earnings of $2.75 a share, compared with Wall Street’s consensus estimate of $2.37, according to FactSet. Revenue came in at $9.9 billion, which was above analysts’ expectations of $9.5 billion.
Management’s financial forecasts were also solid. Qualcomm said that in the current quarter, ending in March, revenue will be between $8.9 billion and $9.7 billion. The midpoint of that range is roughly in line with the consensus call of $9.3 billion.
Qualcomm shares were up as much as 3% following the results, but were falling 2.3% in after-hours trading. The company is a maker of mobile processors and 5G wireless chipsets.
On the conference call with analysts and investors, Qualcomm management said it expects the global handset market to be flat to slightly up for 2024. When asked about the reception of new AI features on recently released flagship smartphones, a company executive said they are “excited” about the initial results thus far, but it is still early.
Qualcomm stock is up 7.3% over the past 12 months, compared with a 45% rise for the
iShares Semiconductor
exchange-traded fund.
Write to Tae Kim at [email protected]
Read the full article here
