March 24, 2023

Qualcomm Reports Better-Than-Expected Quarterly Revenue

A Qualcomm sign is pictured in front of one of its many buildings in San Diego, California

Smartphone chipmaker Qualcomm Inc, which agreed to buy NXP Semiconductors NV for about $38 billion last week, reported a better-than-expected 13.3 percent rise in quarterly revenue, helped by strong demand, particularly in China.

The company’s shares were marginally higher in after-hours trading on Wednesday.

The San Diego-based company, which supplies chips to Android smartphone makers and Apple, reported mobile chip shipments of 211 million for the quarter compared with its own forecast of 195 million-215 million.

Analysts on average had expected shipment of 206.1 million in the quarter, according to research firm FactSet StreetAccount.

“Our chipset business is also benefiting from a strong new product ramp across tiers, particularly with fast growing OEMs in China,” said Qualcomm Chief Executive Officer Steve Mollenkopf.

Qualcomm gets the bulk of its revenue from chip sales but most of its profit comes from wireless patents it licenses to the mobile industry.

The NXP deal – the largest-ever in the semiconductor industry – would make Qualcomm the leading supplier to the fast-growing automotive chips market.

Qualcomm said it expects revenue of $5.7 billion-$6.5 billion (roughly Rs. 38,006 crores to Rs. 43,344 crores) for the current quarter. Analysts had expected $6.15 billion, according to Thomson Reuters.

Net income attributable to Qualcomm rose to $1.60 billion, or $1.07 per share, in the fourth quarter ended September 25, from $1.06 billion, or 67 cents per share, a year earlier.

Revenue rose to $6.18 billion (roughly Rs. 41,211 crores) from $5.46 billion.

Excluding items, Qualcomm earned $1.28 per share, beating the average analyst estimate of $1.22.

Up to Wednesday’s close of $67.09, Qualcomm’s shares had risen 34.2 percent this year, handily outperforming the 22.2 percent gain in the Philadelphia Semiconductor index.

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