Qualcomm Sales Jump on iPhone, 5G Demand Surge -- Update
February 03 2021 - 5:20PM
Dow Jones News
By Asa Fitch
Qualcomm Inc. parlayed the global 5G rollout and Apple Inc.'s
inclusion of its chips in the latest iPhone models into an earnings
jump that failed to satisfy investors betting smartphone sales
would be even higher.
The mobile-phone chip maker on Wednesday said its quarterly
sales rose 62% from the year-ago period to $8.24 billion. Net
income for the first quarter of the company's financial year more
than doubled to $2.46 billion.
The company narrowly missed Wall Street's sales expectations of
$8.27 billion, but beat the bottom line protection of net income of
$2.09 billion, according to analysts surveyed by FactSet.
Sales of chips for phones came in slightly below investor
expectations that had been supercharged by Apple's strong earnings
a week ago. Qualcomm's stock fell more than 8% in after-hours
trading.
Qualcomm's outlook for the current quarter of sales between $7.2
billion and $8 billion also topped Wall Street forecasts.
The chip business is really growing like crazy," Chief Executive
Steve Mollenkopf said. "It's all the things we've been talking
about -- growth in content and growth in devices that's significant
sequentially and year over year."
Mr. Mollenkopf is retiring this year.
Qualcomm is split into two divisions, one that focuses on making
chips and another that profits from licensing Qualcomm's patented
technologies to others. Revenue in the licensing business rose 18%
in the quarter, while sales were 81% higher in the chip
business.
The company also saw strong growth in newer parts of its chip
business. While it made $4.22 billion on chips for handsets, it
also surpassed $1 billion in quarterly sales for the first time for
chips that go into internet-of-things devices and dedicated
circuitry that handles communications with cell towers.
Write to Asa Fitch at asa.fitch@wsj.com
(END) Dow Jones Newswires
February 03, 2021 17:05 ET (22:05 GMT)
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