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Why Qualcomm shares are growing today



What happened

Promotions Qualcomm 09.30 NASDAQ: QCOM jumped on Thursday after the semiconductor company announced its third-quarter fiscal results. Qualcomm has beaten analysts’ estimates around the world, and it has revealed a patent licensing agreement with Huawei. The stock rose 11.9% at 11:20 EDT.

So what

Qualcomm reported third-quarter revenue of $ 4.89 billion, up about the same period last year, after recovering revenue recognized last year from settlement agreements with Apple and its contract manufacturers. Revenue from the chip business increased 7% to $ 3.81 billion, while revenue from the licensing segment decreased 1

9% to $ 1.04 billion. Total revenue was about $ 100 million more than analysts had expected.

Chips on the printed circuit board.

Image source: Getty Images.

Non-GAAP earnings per share (adjusted) were $ 0.86. US dollars, compared to 0.80 dollars. US dollars for the previous year and by 0.15 dollars. The United States is above average analytics. Tax revenue in the chip business jumped 20%, while EBT in the licensing business fell 28%.

In July, Qualcomm signed a long-term global licensing agreement with Huawei. The company expects to recognize $ 1.8 billion in revenue in the fiscal fourth quarter related to the deal, which covers Huawei’s sales from early 2020.

Now what

Qualcomm expects to receive adjusted revenue, which excludes revenue from Huawei’s patent agreement, between $ 5.5 billion and $ 6.3 billion. USA in the fourth quarter. This includes chip revenue of between $ 4.3 billion and $ 4.9 billion, and licensing revenue of $ 1.2 billion to $ 1.4 billion. The company sees adjusted EPS between $ 1.05 and $ 1.25.

Qualcomm’s instructions call for a 15% reduction in phone shipments through COVID-19, as well as a delay in the unnamed global flagship 5G phone, which is believed to be the future 5G iPhone iPhone. Reports suggest that mass production of Apple’s new iPhones is lagging behind schedule.

Including the stock on Thursday, Qualcomm shares destroyed virtually all losses associated with the pandemic. Shares of the chip company are now just below their 52-week high.




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