Qualcomm stock surges as fiscal Q2 results top expectations, outlook is even stronger
Chip giant Qualcomm this afternoon reported fiscal Q2 revenue and profit that comfortably exceeded Wall Street's expectations, and an outlook that was even stronger.
The report sent Qualcomm shares up almost 6% in late trading.
CEO Steve Mollenkopf remarked that results were driven by "driven by sustained demand for smartphones globally and our ability to increase the scale of our non-handset revenues."
Added Mollenkopf, "Looking ahead, Qualcomm is well positioned for continued growth, and we remain confident in our ability to execute on the many opportunities in front of us. I am extremely honored and proud to have led Qualcomm for the past seven years and am confident in the Company's ability to extend its position as a leader in wireless technologies under Cristiano's leadership," referring to Cristiano Amon, longtime Qualcomm executive who is stepping into the top spot.
Revenue in the three months ended in March rose to $7.94 billion, yielding a net profit of $1.90 a share, excluding some costs.
Analysts had been modeling $7.6 billion and $1.67 per share.
Qualcomm's revenue from its "QCT" business of selling baseband cellular modems and applications processors rose by 53%, year over, to $4.07 billion, it said. The business of selling RF chips to accompany that modem business, a newer line of revenue, rose by 39%, to $903 million.
For the current quarter, the company sees revenue of $7.1 billion to $7.9 billion, and EPS in a range of $1.55 cents to $1.75. That compares to consensus for $7.15 billion and $1.55 per share.