Qualcomm exceeded Wall Street estimates in the fourth quarter of the fiscal year.
The American multinational reported net income of £2.28 billion for the fourth quarter.
Qualcomm forecasts adjusted revenues of up to £6.63 billion for the financial quarter Q1.
Qualcomm Inc. (NASDAQ: QCOM) on Wednesday released its financial results for the fourth quarter of fiscal year that dwarfed Wall Street estimates. The company attributed its combative performance primarily to the introduction of 5G products.
Qualcomm reported an increase of approximately 15 percent in post-closing trading on Wednesday. So far this year, the company’s shares have risen nearly 65% on the stock market. Since March, the stock has gained approximately 140%. Here is what you need to know about the different types of equity investments.
Qualcomm’s financial results for the fourth quarter compared to analysts’ estimates
At £2.28 billion, Qualcomm said its net profit for the fourth quarter was significantly higher than £390.25 million for the same quarter last year. On an adjusted basis, the U.S. multinational earned £1.12 per share compared to £60.16 per share in the same period last year.
In terms of revenue, the San Diego-based company recorded £6.44 billion in the final quarter, compared to £3.71 billion in the same quarter last year. Revenue for the fourth quarter was £5.01 billion on an adjusted basis.
According to FactSet, experts had predicted that the company would print adjusted revenues of £4.55 billion in the fourth quarter. Their estimate of earnings per share was capped at 90 pence. In the previous quarter (Q3) Qualcomm had recorded revenues of £3.77 billion.
Comments from CEO Steve Mollenkopf on Wednesday
CEO Steve Mollenkopf commented on the results report on Wednesday and said
“Our financial results for the fourth quarter show that our investments in 5G are bearing fruit and showing benefits in our licensing and product business. We ended the year with exceptional fourth quarter results and are well positioned for growth in 2021 and beyond”.
With several manufacturers close to launching their 5G smartphones, including Apple Inc. which recently launched its newest iPhone, Qualcomm’s financial performance is expected to jump in the new fiscal year. In a separate news release from the U.S., Amazon Inc. posted strong gains on the stock market on Wednesday in anticipation of the U.S. presidential election.
For the first quarter of the fiscal year, Qualcomm now forecasts a decline in its adjusted earnings in the range of £1.50 to £1.66 per share. For the first quarter, the company expects adjusted revenues of between £6.02 billion and £6.63 billion. Qualcomm did not issue a guidance for the full fiscal year 2021.
At the time of writing, the U.S. multinational is valued at £112.22 billion and has a price-earnings ratio of 54.52.