Steve Mollenkopf, chief executive officer of Qualcomm Inc.
Patrick T. Fallon | Bloomberg | Getty Images
Qualcomm stock rose roughly 3% in extended trading as its revenue and adjusted earnings per share handily beat Wall Street expectations.
Here’s how Qualcomm did versus Refinitiv consensus estimates for the quarter ended Sept. 27:
- Earnings: $1.45 per share (adjusted) vs. $1.17 estimated
- Revenue: $6.5 billion (adjusted) vs $5.93 billion estimated
Qualcomm said that it would change its reporting to break out revenue from handset, radio frequency, automotive and internet-of-things chips. Qualcomm said that it would not break out sales or provide guidance for its MSM chip segment, which are mobile modem chips.
Previously, those business lines were reported together under Qualcomm’s QCT segment, which focuses on chips. QCT sales were up 38% from the same quarter last year to $4.97 billion, Qualcomm said.
Qualcomm’s other big segment is QTL, which includes licensing fees it collects because it owns core telecommunications patents. QTL revenue increased 30% from the same period last year to $1.51 billion.
Net income was up 76% from a year ago, Qualcomm said.
Qualcomm has said it is well-placed to benefit from the rise of 5G networks and handsets. One of its 5G modem chips is included in Apple‘s iPhone 12.
“Our fiscal fourth quarter results demonstrate that our investments in 5G are coming to fruition and
showing benefits in our licensing and product businesses,” Qualcomm CEO Steve Mollenkopf said in a statement.
Last month, Qualcomm won a major court battle when an appeals court denied the FTC’s request for a rehearing of a previous decision that found that Qualcomm’s licensing business practices are legal.