Qualcomm delivers strong Q3, ups outlook for Q4

The company cited strong gains from smartphone OEMs in China for the quarterly surge.

Qualcomm delivered strong fiscal third quarter results and cited strong demand from Chinese smartphone manufacturers.

The mobile chip maker reported third quarter earnings of $1.4 billion, or 97 cents a share, on revenue of $6 billion, up 4 percent from a year ago. Non-GAAP earnings for the quarter was $1.16 billion.

Wall Street was expecting fiscal third quarter non-GAAP earnings of 97 cents a share on revenue of $5.58 billion.

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As for the outlook, Qualcomm gave a wide range. The company projected sales for the fourth quarter between $5.4 billion and $6.2 billion with non-GAAP earnings of $1.05 to $1.15 a share.

Analysts were looking for fourth quarter non-GAAP earnings of $1.08 a share on sales of $5.73 billion.

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CEO Steve Mollenkopf said that Qualcomm is investing in 5G and advanced technology and that should set up earnings growth for the future.

Meanwhile, Qualcomm has been cutting costs and is on track to shed $1.4 billion on an annual run rate.