Chip maker Qualcomm Inc. (QCOM) Wednesday reported first-quarter results, with both earnings and revenues beating Wall Street analyst expectations. The company also issued a strong outlook for its second quarter. However, Qualcomm stock slipped nearly 5% in extended trading session.
San Diego, California-based Qualcomm’s first-quarter profit rose 38% to $3.40 billion or $2.98 per share from $2.46 billion or $2.12 per share last year.
Adjusted earnings for the quarter were $3.69 billion or $3.23 per share, up from $2.51 billion or $2.17 per share last year. On average, 24 analysts polled by Thomson Reuters expected earnings of $3.01 per share. Analysts’ estimates typically exclude special items.
Qualcomm’s first-quarter revenues jumped 30% to $10.71 billion from $8.24 billion last year. Adjusted revenues were $10.70 billion, a 30% increase from $8.23 billion last year. Analysts had a consensus revenue estimate of $10.42 billion for the quarter.
The company reported 35% surge in revenues in the QCT segment, which makes chips, driven by strong demand for chips for smartphones and handsets. While, QTL segment, the company’s technology licensing division, grew 10% to $1.82 billion in revenues.
“Our record quarterly results reflect the strong demand for our products and technologies, with QCT revenues exceeding those of any fabless semiconductor company,” said CEO Cristiano Amon. “We are at the beginning of one of the largest opportunities in our history, with our addressable market expanding by more than seven times to approximately $700 billion in the next decade. Our one technology roadmap positions us as the partner of choice for both mobile and the connected intelligent edge.”
Looking forward, the company expects second-quarter adjusted earnings of $2.80 to $3.00 per share and revenues of $10.2 billion to $11.0 billion. Analysts currently estimate earnings of $2.49 per share and revenues of $9.61 billion.
QCOM closed Wednesday’s trading at $188.20, up $11.07 or 6.25%, on the Nasdaq. The stock, however, slipped $9.20 or 4.89% in the after-hours trading.
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