Investors cheered as
reported healthy profits and sales that surpassed late Wednesday.
The maker of mobile chips reminded investors that it has other large, growing companies in addition to handsets. Qualcomm (ticker: QCOMM) predicts it will reach $10 billion in annual sales by 2021 for chips used in the Internet of Things (IoT) and industrial applications, among others.
“Our solutions fuel the connected intelligent edge that enables the cloud economy, and we see unprecedented demand for our technologies as the pace of digital transformation accelerates,” CEO Cristiano Amon said in a press release.
Qualcomm shares were up 2.3% in the extended session Wednesday, after closing up 1.1% to $142.44.
The chip maker reported fiscal third quarter net income of $2 billion, or $1.77 per share, up from $845 million, or 74 cents per share, over the same period a year ago. Adjusted for stock compensation, among other things, earnings were $1.92 per share in the last quarter, and revenues rose 65% to $8.1 billion.
Analysts had expected earnings of $1.69 per share and revenue of $7.6 billion, both non-GAAP figures; Qualcomm reported non-GAAP revenue of $8 billion.
Qualcomm said its chip hardware segment revenue grew 70% in its fiscal third quarter to $6.5 billion. The segment includes sales of mobile phones – which accounted for $3.9 billion in revenue in the third quarter – are radio frequency, automotive and IoT chips. The company’s licensing revenue grew 43% to $1.5 billion.
For the fiscal fourth quarter, Qualcomm expects adjusted earnings per share of $2.15 to $2.35, on revenue of $8.4 billion to $9.2 billion. For the fiscal fourth quarter, analysts have modeled a non-GAAP EPS of $2.07, on revenue of $8.5 billion.
Investors had high hopes for chipmakers heading for June quarterly results amid a crippling chip shortage around the world. The overwhelming demand has given companies the opportunity to significantly increase their sales and profits as the world’s hunger for semiconductors remains seemingly unquenchable.
Write to Max A. Cherney at firstname.lastname@example.org