We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Qualcomm (QCOM) Tops Q3 Earnings Estimates on Solid Revenues
Read MoreHide Full Article
Qualcomm Incorporated (QCOM - Free Report) reported strong third-quarter fiscal 2024 results, with the bottom and top lines beating the respective Zacks Consensus Estimate, driven by healthy demand trends in Android handsets and automotive businesses. Both metrics improved year over year, led by the strength of the business model, revenue diversification and the ability to respond proactively to the evolving market scenario.
Management expects a steady improvement in the demand trajectory in the remainder of fiscal 2024 and remains confident of delivering non-GAAP earnings per share growth of about 20% year over year.
Net Income
On a GAAP basis, net income in the June quarter improved to $2.13 billion or $1.88 per share from $1.8 billion or $1.60 per share in the prior-year quarter. The increase in GAAP earnings was primarily attributable to top-line growth.
Quarterly non-GAAP net income came in at $2.65 billion or $2.33 per share compared with $2.1 billion or $1.87 per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 8 cents.
QUALCOMM Incorporated Price, Consensus and EPS Surprise
On a GAAP basis, total revenues in the fiscal third quarter were $9.39 billion compared with $8.45 billion in the year-ago quarter. The quarterly revenues beat the consensus mark of $9.23 billion. Despite soft industrial IoT demand patterns, Qualcomm registered record automotive revenues for the fourth consecutive quarter owing to solid momentum from the Snapdragon Digital Chassis platform. Strength within the handset business also buoyed the top line.
Segment Results
Quarterly revenues from Qualcomm CDMA Technologies (QCT) were $8.07 billion, up from $7.17 billion, as strength in the automotive platform and higher demand in handsets was partially offset by channel inventory drawdown within the IoT business. The company witnessed solid market traction in the EDGE networking business that helps transform connectivity in cars, business enterprises, homes, smart factories, next-generation PCs, wearables and tablets.
Automotive revenues rose 87% to a record high of $811 million, driven by increased content in new vehicle launches with its Snapdragon Digital Chassis platform. This was the 15th consecutive quarter in which Qualcomm recorded double-digit growth in automotive revenues.
The company expects automotive revenues to increase to more than $4 billion in fiscal 2026. Handset revenues were up 12% to $5.9 billion, primarily led by healthy traction in premium Android handsets and solid revenues from China-based OEMs. However, IoT revenues were down 8% to $1.4 billion due to the channel inventory drawdown. EBT margin for the QCT segment rose to 27% from 24%.
Qualcomm Technology Licensing (QTL) revenues totaled $1.27 billion, up 3% year over year, owing to strength in handset and automotive businesses. EBT margin improved to 70% from 66%.
Cash Flow & Liquidity
Qualcomm generated $9.56 billion of net cash from operating activities in the first nine months of fiscal 2024 compared with $7.21 billion a year ago. At quarter-end, the company had $7.77 billion in cash and cash equivalents and $13.19 billion of long-term debt. The company repurchased 7 million shares for $1.3 billion during the quarter.
Q4 Guidance
For the fourth quarter of fiscal 2024, Qualcomm expects GAAP revenues of $9.5-$10.3 billion due to market stabilization, recovery in market demand and portfolio strength. Non-GAAP earnings are projected to be $2.45-$2.65 per share, while GAAP earnings are likely to be $2.38-$2.58 per share. Revenues from QTL are expected to be between $1.35 billion and $1.55 billion. For QCT, the company anticipates revenues between $8.1 billion and $8.7 billion.
Cogent Communications Holdings, Inc. (CCOI - Free Report) is scheduled to release second-quarter 2024 earnings on Aug 8. The Zacks Consensus Estimate for earnings is pegged at a loss of $1.02 per share, suggesting a decline of 684.6% from the year-ago reported figure.
Akamai Technologies, Inc. (AKAM - Free Report) is slated to release second-quarter 2024 earnings on Aug 8. The Zacks Consensus Estimate for earnings is pegged at $1.54 per share, indicating growth of 3.4% from the year-ago reported figure.
Akamai has a long-term earnings growth expectation of 4.8%. AKAM delivered an average earnings surprise of 5.4% in the last four reported quarters.
Keysight Technologies, Inc. (KEYS - Free Report) is due to release third-quarter fiscal 2024 earnings on Aug 20. The Zacks Consensus Estimate for earnings is pegged at $1.35 per share, implying a decline of 38.4% from the year-ago reported figure.
Keysight has a long-term earnings growth expectation of 5.5%. KEYS delivered an average earnings surprise of 4.4% in the last four reported quarters.
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Shutterstock
Qualcomm (QCOM) Tops Q3 Earnings Estimates on Solid Revenues
Qualcomm Incorporated (QCOM - Free Report) reported strong third-quarter fiscal 2024 results, with the bottom and top lines beating the respective Zacks Consensus Estimate, driven by healthy demand trends in Android handsets and automotive businesses. Both metrics improved year over year, led by the strength of the business model, revenue diversification and the ability to respond proactively to the evolving market scenario.
Management expects a steady improvement in the demand trajectory in the remainder of fiscal 2024 and remains confident of delivering non-GAAP earnings per share growth of about 20% year over year.
Net Income
On a GAAP basis, net income in the June quarter improved to $2.13 billion or $1.88 per share from $1.8 billion or $1.60 per share in the prior-year quarter. The increase in GAAP earnings was primarily attributable to top-line growth.
Quarterly non-GAAP net income came in at $2.65 billion or $2.33 per share compared with $2.1 billion or $1.87 per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 8 cents.
QUALCOMM Incorporated Price, Consensus and EPS Surprise
QUALCOMM Incorporated price-consensus-eps-surprise-chart | QUALCOMM Incorporated Quote
Revenues
On a GAAP basis, total revenues in the fiscal third quarter were $9.39 billion compared with $8.45 billion in the year-ago quarter. The quarterly revenues beat the consensus mark of $9.23 billion. Despite soft industrial IoT demand patterns, Qualcomm registered record automotive revenues for the fourth consecutive quarter owing to solid momentum from the Snapdragon Digital Chassis platform. Strength within the handset business also buoyed the top line.
Segment Results
Quarterly revenues from Qualcomm CDMA Technologies (QCT) were $8.07 billion, up from $7.17 billion, as strength in the automotive platform and higher demand in handsets was partially offset by channel inventory drawdown within the IoT business. The company witnessed solid market traction in the EDGE networking business that helps transform connectivity in cars, business enterprises, homes, smart factories, next-generation PCs, wearables and tablets.
Automotive revenues rose 87% to a record high of $811 million, driven by increased content in new vehicle launches with its Snapdragon Digital Chassis platform. This was the 15th consecutive quarter in which Qualcomm recorded double-digit growth in automotive revenues.
The company expects automotive revenues to increase to more than $4 billion in fiscal 2026. Handset revenues were up 12% to $5.9 billion, primarily led by healthy traction in premium Android handsets and solid revenues from China-based OEMs. However, IoT revenues were down 8% to $1.4 billion due to the channel inventory drawdown. EBT margin for the QCT segment rose to 27% from 24%.
Qualcomm Technology Licensing (QTL) revenues totaled $1.27 billion, up 3% year over year, owing to strength in handset and automotive businesses. EBT margin improved to 70% from 66%.
Cash Flow & Liquidity
Qualcomm generated $9.56 billion of net cash from operating activities in the first nine months of fiscal 2024 compared with $7.21 billion a year ago. At quarter-end, the company had $7.77 billion in cash and cash equivalents and $13.19 billion of long-term debt. The company repurchased 7 million shares for $1.3 billion during the quarter.
Q4 Guidance
For the fourth quarter of fiscal 2024, Qualcomm expects GAAP revenues of $9.5-$10.3 billion due to market stabilization, recovery in market demand and portfolio strength. Non-GAAP earnings are projected to be $2.45-$2.65 per share, while GAAP earnings are likely to be $2.38-$2.58 per share. Revenues from QTL are expected to be between $1.35 billion and $1.55 billion. For QCT, the company anticipates revenues between $8.1 billion and $8.7 billion.
Zacks Rank
Qualcomm currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Cogent Communications Holdings, Inc. (CCOI - Free Report) is scheduled to release second-quarter 2024 earnings on Aug 8. The Zacks Consensus Estimate for earnings is pegged at a loss of $1.02 per share, suggesting a decline of 684.6% from the year-ago reported figure.
Akamai Technologies, Inc. (AKAM - Free Report) is slated to release second-quarter 2024 earnings on Aug 8. The Zacks Consensus Estimate for earnings is pegged at $1.54 per share, indicating growth of 3.4% from the year-ago reported figure.
Akamai has a long-term earnings growth expectation of 4.8%. AKAM delivered an average earnings surprise of 5.4% in the last four reported quarters.
Keysight Technologies, Inc. (KEYS - Free Report) is due to release third-quarter fiscal 2024 earnings on Aug 20. The Zacks Consensus Estimate for earnings is pegged at $1.35 per share, implying a decline of 38.4% from the year-ago reported figure.
Keysight has a long-term earnings growth expectation of 5.5%. KEYS delivered an average earnings surprise of 4.4% in the last four reported quarters.