Qualcomm's 3Q Profit More Than Doubles, Results Beat Wall Street Targets
July 28 2021 - 4:22PM
Dow Jones News
By Maria Armental
Qualcomm Inc.'s third-quarter profit more than doubled and
revenue rose a better-than-expected 65%, helped by high demand for
smart phones and the roll-out of the latest and fastest mobile
network technology.
The mobile-phone chip maker reported $8.06 billion in revenue
for the quarter ended June 27, while profit surged to $2.03 billion
from $845 million a year earlier. On a per-share basis, profit was
$1.77, or $1.92 as adjusted.
The results easily exceeded the company's forecast and the
analyst consensus, according to FactSet.
"In addition to leading the 5G transition, we are on pace to
deliver $10 billion of annual revenues across RF front-end, IoT and
Automotive as our business continues to diversify," Chief Executive
Cristiano Amon said in a statement.
Sales in the chip business, which accounts for the bulk of
revenue, rose 70%. Meanwhile, the licensing business, a key profit
driver, rose 43% in the latest period.
Qualcomm reported $3.86 billion in sales of chips for handsets,
up 57% from the year earlier, while sales of chips that go into
internet-of-things devices reached nearly $1.4 billion, up 83% from
the previous year. Radio frequency front-end segment revenue more
than doubled from the year earlier, the company said.
For the fourth quarter, Qualcomm expects earnings of $1.78 to
$1.98 a share, or $2.15 to $2.35 a share on an adjusted basis, on
$8.4 billion to $9.2 billion in sales, compared with analysts'
projections for $1.77 a share, or $2.03 a share as adjusted, on
$8.46 billion in sales, according to FactSet.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
July 28, 2021 16:16 ET (20:16 GMT)
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