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Qualcomm Inc. Reports Impressive Quarterly Profit

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Qualcomm Inc., a leading semiconductor company, has exceeded profit expectations in its recent quarterly report, causing its stock to soar in the aftermarket. In the fiscal first quarter, net income reached $2.8 billion, or $2.46 per share, surpassing the previous year’s figures of $2.2 billion, or $1.98 per share. Adjusted earnings per share stood at $2.75, outperforming analysts’ estimate of $2.37.

The company’s revenue also saw a positive growth, rising from $9.46 billion to $9.94 billion compared to the same period last year. This increase in revenue surpassed the FactSet consensus of $9.51 billion.

Strong Performance in Semiconductor Business and Licensing Segment

Qualcomm’s QCT semiconductor business experienced substantial revenue growth of 7%, reaching $8.4 billion. Analysts had predicted revenue of $8.1 billion for this segment. However, the QTL licensing segment saw a 4% decline in revenue, amounting to $1.5 billion, which still exceeded the consensus view of $1.4 billion.

Focus on Future Growth Opportunities

Cristiano Amon, Chief Executive of Qualcomm, expressed confidence in the company’s future prospects. He highlighted their leading Snapdragon platforms and technological advancements in connectivity, computing, and on-device generative AI across various sectors including handsets, automotive, PC, extended reality, and industrial Internet of Things.

Positive Market Response

Following the impressive earnings report, Qualcomm’s stock rose approximately 3% in after-hours trading.

Positive Outlook for the Coming Months

For the upcoming March quarter, Qualcomm anticipates revenue between $8.9 billion and $9.7 billion, surpassing the FactSet consensus of $9.3 billion. Furthermore, management predicts QCT revenue to range from $7.6 billion to $8.2 billion, exceeding analysts’ expectations of $7.9 billion.

The company also expects adjusted earnings per share of $2.20 to $2.40 for the fiscal second quarter, with the midpoint of this range surpassing the FactSet consensus estimate of $2.25.

Overall, Qualcomm’s strong financial performance has positioned the company for continued growth and success in the semiconductor industry.

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