Qualcomm Shares Surge as Its Results Top Estimates on Rising Smartphone Demand

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Bill McColl
Bill McColl
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Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

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Published November 02, 2023
Qualcomm stall at the China International Fair for Trade in Services

WANG ZHAO / Contributor / Getty Images

Key Takeaways

  • Qualcomm beat profit and sales estimates and posted better-than-expected guidance on signs of a recovery in mobile phone sales.
  • CFO Akash Palkhiwala indicated the company is seeing the early signs of a "stabilization" in demand for handsets.
  • The company anticipates shipments of smartphones with Qualcomm chips will be higher than previously thought.

Qualcomm (QCOM) shares jumped over 6% in intraday trading Thursday after the chipmaker posted better-than-expected results and guidance on increasing demand for mobile phones.

The company reported fourth quarter fiscal 2023 earnings per share (EPS) of $2.02. Revenue was down 24% year-over-year to $8.67 billion. Both were more than forecasts.

Sales at its QTC unit, which makes circuits and other technology for mobile devices, fell 26% to $7.4 billion. They dropped 12% to $1.3 billion at its QTL division, which focuses on licensing its products. 

CFO Akash Palkhiwala said the company is seeing “early signs of stabilization in demand for global 3G, 4G, 5G handsets.” He noted the outlook for shipments of smartphones with Qualcomm chips would be for a decline in the mid- to high-single-digit percent range, better than its previous estimate. 

Qualcomm anticipates current quarter EPS of $2.25, with revenue in a range of $9.1 billion to $9.9 billion. Analysts had been looking for EPS of $2.23 and revenue of $9.2 billion. The company expects QTC sales of $7.7 billion to $8.3 billion, and sales of QTL at $1.3 billion to $1.5 billion.

With Thursday's gains, shares of Qualcomm were trading in positive territory for 2023 after ending the month of October lower for the year.

QCOM

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  1. Qualcomm. "Qualcomm Announces Fourth Quarter and Fiscal 2023 Results."

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