Qualcomm Surpasses Wall Street Estimates in Q4 Earnings Report
Qualcomm, a leader in wireless technology, recently announced its fiscal fourth-quarter earnings, surpassing Wall Street expectations. The company reported earnings per share of $3, exceeding the consensus estimate of $2.88. Additionally, Qualcomm’s revenue reached $11.27 billion, outpacing analysts’ predictions of $10.79 billion.
Positive Financial Performance
Compared to the same period last year, Qualcomm’s sales improved by 10%. As the company looks to the future, it projects revenue between $11.8 billion and $12.6 billion for the current quarter, with a midpoint estimate of $12.2 billion. This forecast exceeds the average analyst estimate of $11.62 billion.
Future Earnings Outlook
- Expected earnings per share: $3.30 to $3.50
- Analyst forecast: $3.30
Market Position and Diversification
Qualcomm has maintained a strong presence in the mobile phone chip market, particularly for high-end devices such as Apple’s iPhone. However, the company anticipates a loss of Apple as a customer in the future and is actively seeking to diversify its offerings.
Recent initiatives include developing microchips for personal computers and smart glasses, such as those produced by Meta Platforms. Furthermore, Qualcomm plans to introduce new artificial intelligence (AI) accelerator chips, entering a market largely dominated by Nvidia.
Segment Revenue Highlights
- Handsets business revenue: $6.96 billion, up 14% year-over-year
- Automotive unit sales: increased by 17%
- Internet of Things (IoT) division sales: rose by 7%
Analyst Ratings and Stock Performance
According to a consensus among ten Wall Street analysts, Qualcomm’s stock holds a Moderate Buy rating. This rating reflects seven Buy recommendations and three Hold ratings assigned over the past three months.
The average price target for Qualcomm stock is $195.00, suggesting a 7.28% upside potential from current levels. Analyst ratings may be subject to change following the recent financial results.
