Qualcomm Q3 Profit Surges

Semiconductor giant Qualcomm (QCOM) on Wednesday reported a strong increase in third-quarter profit driven by a 65% growth in revenue. Both revenues and earnings trumped analyst estimates. The shares are trading 3% higher on a positive outlook.

The California-based company said the net income for the quarter was $2.02 billion or $1.77 per share, up from $845 million or $0.74 per share in the same quarter last year.

Excluding one-time items, profit was $2.20 billion or $1.92 per share, up from $982 million or $0.86 per share in 2020. Twenty-two analysts polled by Thomson Reuters predicted earnings of $1.67 per share. Typically analysts exclude special items from forecasts.

The revenue, as reported by the company, was $8.06 billion, up 65% from $4.89 billion last year. One of the key contributors to the surge was a 70% increase in Qualcomm CDMA Technology which earned $6.47 billion this year, up from $3.80 billion in the previous year. Twenty-one analysts expected $7.55 billion in revenue for this quarter.

Looking forward, the company expects fourth-quarter revenues of $8.4 billion to $9.2 billion and adjusted earnings of $2.15 to $2.35 per share. Twenty-one analysts expect $8.48 billion in revenue with $2.04 in earnings for the fourth quarter.

For the full year, the company expects adjusted earnings of $8.24, while analysts currently expect $7.77.

Cristiano Amon, the President and CEO of the company, said, "In addition to leading the 5G transition, we are on pace to deliver $10 billion of annual revenues across RF front-end, IoT and Automotive as our business continues to diversify. Our solutions are fueling the connected intelligent edge that is enabling the cloud economy, and we are seeing unprecedented demand for our technologies as the pace of digital transformation accelerates."

The shares are currently trading at $146.63, up $3.99 or 2.80% in the after-hours market. QCOM closed regular trading at $142.44, up $1.51 or 1.07%.

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