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Qualcomm Beats Q4 Earnings Estimates on Solid Top-Line Growth
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Qualcomm Incorporated (QCOM - Free Report) reported strong fourth-quarter fiscal 2024 results, with adjusted earnings and revenues 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.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Net Income
On a GAAP basis, net income in the September quarter nearly doubled to $2.92 billion or $2.59 per share from $1.49 billion or $1.32 per share in the prior-year quarter. The increase was attributable to top-line growth.
Quarterly non-GAAP net income came in at $3.04 billion or $2.69 per share compared with $2.28 billion or $2.02 per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 13 cents.
For fiscal 2024, GAAP earnings were up from $7.23 billion or $6.42 per share to $10.14 billion or $8.97 per share, while non-GAAP earnings increased from $9.49 billion or $8.43 per share to $11.54 billion or $10.22 per share.
QUALCOMM Incorporated Price, Consensus and EPS Surprise
On a GAAP basis, total revenues in the fiscal fourth quarter improved to $10.24 billion from $8.66 billion in the year-ago quarter. The quarterly revenues beat the consensus mark of $9.9 billion. Qualcomm registered record automotive revenues for the fifth consecutive quarter owing to solid momentum in the Snapdragon Digital Chassis platform. Strength within the handset and industrial Internet of Things (IoT) businesses also buoyed the top line.
For fiscal 2024, GAAP revenues increased to $38.96 billion from $35.82 billion in fiscal 2023.
Segment Results
Quarterly revenues from Qualcomm CDMA Technologies (QCT) were $8.68 billion, up from $7.37 billion, as strength in the automotive platform and higher demand in handsets, along with normalization of channel inventory within the IoT business, aided the top-line growth. 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 68% to a record high of $899 million, driven by increased content in new vehicle launches with its Snapdragon Digital Chassis platform. This was the 16th consecutive quarter in which Qualcomm recorded double-digit growth in automotive revenues. Handset revenues jumped 12% to $6.1 billion, led by healthy traction in premium Android handsets. IoT revenues were up 22% to $1.68 billion on new product launches and channel inventory normalization. EBT margin for the QCT segment rose to 28% from 26%.
Qualcomm Technology Licensing (QTL) revenues totaled $1.52 billion, up 21% year over year, owing to strength in handset and automotive businesses. EBT margin improved to 74% from 66%.
Cash Flow & Liquidity
Qualcomm generated $12.2 billion of net cash from operating activities in fiscal 2024 compared with $11.3 billion a year ago. At fiscal-end 2024, the company had $7.85 billion in cash and cash equivalents and $13.27 billion of long-term debt compared with respective tallies of $8.45 billion and $14.48 billion in year-earlier period. The company repurchased 8 million shares for $1.3 billion during the quarter.
Q1 Guidance
For the first quarter of fiscal 2025, Qualcomm expects GAAP revenues of $10.5-$11.3 billion due to market stabilization, recovery in market demand and portfolio strength. Non-GAAP earnings are projected to be $2.85-$3.05 per share, while GAAP earnings are likely to be $2.39-$2.59 per share. Revenues from QTL are expected to be between $1.45 billion and $1.65 billion. For QCT, the company anticipates revenues between $9 billion and $9.6 billion with a mid-single-digit percentage growth in handset revenues, about a 20% rise in IoT and a 50% improvement in automotive revenues.
Light & Wonder, Inc. (LNW - Free Report) is scheduled to release third-quarter 2024 earnings on Nov 12. The Zacks Consensus Estimate for earnings is pegged at a loss of $1.16 per share.
Keysight Technologies, Inc. (KEYS - Free Report) is due to release fourth-quarter fiscal 2024 earnings on Nov 19. The Zacks Consensus Estimate for earnings is pegged at $1.57 per share, implying a decline of 21.1% from the year-ago reported figure.
Workday, Inc. (WDAY - Free Report) is slated to release third-quarter fiscal 2025 earnings on Nov 26. The Zacks Consensus Estimate for earnings is pegged at $1.72 per share, indicating growth of 12.4% from the year-ago reported figure.
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Qualcomm Beats Q4 Earnings Estimates on Solid Top-Line Growth
Qualcomm Incorporated (QCOM - Free Report) reported strong fourth-quarter fiscal 2024 results, with adjusted earnings and revenues 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.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Net Income
On a GAAP basis, net income in the September quarter nearly doubled to $2.92 billion or $2.59 per share from $1.49 billion or $1.32 per share in the prior-year quarter. The increase was attributable to top-line growth.
Quarterly non-GAAP net income came in at $3.04 billion or $2.69 per share compared with $2.28 billion or $2.02 per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 13 cents.
For fiscal 2024, GAAP earnings were up from $7.23 billion or $6.42 per share to $10.14 billion or $8.97 per share, while non-GAAP earnings increased from $9.49 billion or $8.43 per share to $11.54 billion or $10.22 per share.
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 fourth quarter improved to $10.24 billion from $8.66 billion in the year-ago quarter. The quarterly revenues beat the consensus mark of $9.9 billion. Qualcomm registered record automotive revenues for the fifth consecutive quarter owing to solid momentum in the Snapdragon Digital Chassis platform. Strength within the handset and industrial Internet of Things (IoT) businesses also buoyed the top line.
For fiscal 2024, GAAP revenues increased to $38.96 billion from $35.82 billion in fiscal 2023.
Segment Results
Quarterly revenues from Qualcomm CDMA Technologies (QCT) were $8.68 billion, up from $7.37 billion, as strength in the automotive platform and higher demand in handsets, along with normalization of channel inventory within the IoT business, aided the top-line growth. 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 68% to a record high of $899 million, driven by increased content in new vehicle launches with its Snapdragon Digital Chassis platform. This was the 16th consecutive quarter in which Qualcomm recorded double-digit growth in automotive revenues. Handset revenues jumped 12% to $6.1 billion, led by healthy traction in premium Android handsets. IoT revenues were up 22% to $1.68 billion on new product launches and channel inventory normalization. EBT margin for the QCT segment rose to 28% from 26%.
Qualcomm Technology Licensing (QTL) revenues totaled $1.52 billion, up 21% year over year, owing to strength in handset and automotive businesses. EBT margin improved to 74% from 66%.
Cash Flow & Liquidity
Qualcomm generated $12.2 billion of net cash from operating activities in fiscal 2024 compared with $11.3 billion a year ago. At fiscal-end 2024, the company had $7.85 billion in cash and cash equivalents and $13.27 billion of long-term debt compared with respective tallies of $8.45 billion and $14.48 billion in year-earlier period. The company repurchased 8 million shares for $1.3 billion during the quarter.
Q1 Guidance
For the first quarter of fiscal 2025, Qualcomm expects GAAP revenues of $10.5-$11.3 billion due to market stabilization, recovery in market demand and portfolio strength. Non-GAAP earnings are projected to be $2.85-$3.05 per share, while GAAP earnings are likely to be $2.39-$2.59 per share. Revenues from QTL are expected to be between $1.45 billion and $1.65 billion. For QCT, the company anticipates revenues between $9 billion and $9.6 billion with a mid-single-digit percentage growth in handset revenues, about a 20% rise in IoT and a 50% improvement in automotive revenues.
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
Light & Wonder, Inc. (LNW - Free Report) is scheduled to release third-quarter 2024 earnings on Nov 12. The Zacks Consensus Estimate for earnings is pegged at a loss of $1.16 per share.
Keysight Technologies, Inc. (KEYS - Free Report) is due to release fourth-quarter fiscal 2024 earnings on Nov 19. The Zacks Consensus Estimate for earnings is pegged at $1.57 per share, implying a decline of 21.1% from the year-ago reported figure.
Workday, Inc. (WDAY - Free Report) is slated to release third-quarter fiscal 2025 earnings on Nov 26. The Zacks Consensus Estimate for earnings is pegged at $1.72 per share, indicating growth of 12.4% from the year-ago reported figure.