Along with announcing two new chips that promise to challenge even the mighty Apple Inc
Qualcomm Topped Fiscal Fourth Quarter Estimates
On Wednesday, Qualcomm topped top and bottom-line estimates with its fourth fiscal quarter results. For the quarter that ended on September 24th, Qualcomm reported revenue of $8.67 billion that topped LSEG's estimate of $8.51 billion despite declining 24% YoY while adjusted revenue for the fiscal year contracted 19% YoY to $35.83 billion. For the fiscal fourth quarter, Qualcomm posted a net profit of $1.49 billion or $1.32 per share which translates to a 48% YoY decrease. Adjusted earnings amounted to $2.02, topping the expected $1.91.
Its biggest division that sells handset chips and processors, QCT, reported sales contracted 26% to $7.37 billion. Internet of Things segment with includes chips that are used by Meta Platforms
Qualcomm Provided A Strong Guidance
Despite significant YoY declines in the reported quarter, Qualcomm provided a strong outlook for the undergoing quarter. For the last three quarters of 2023, Qualcomm guided for sales in the range between $9.1 billion and $9.9 billion with adjusted earnings per share ranging between $2.25 and $2.45. LSEG's estimates were in the range. Like AMD and Intel, Qualcomm opted for an optimised outlook.
AMD, Intel And Now Qualcomm Gave Positive Signals For The Chip Industry
With its fortunes tied to the smartphone industry, Qualcomm inevitably suffered as the industry tanked after the Covid-induced boom. But with its latest results, Qualcomm provided hope that the slump that lasted almost two years might be over. Moreover, Qualcomm is intensely working on its positioning for the generative AI era. The two Android and Windows PC chips for Microsoft with improved AI features it announced in October seem to be its entry ticket to the generative AI table, while it still continues to supply Apple with 5G models for handsets through 2026.
When it provided details about the chip for Microsoft-Windows laptops, Qualcomm claimed that they will make these devices faster at some tasks than Apple-made Macs. Besides Microsoft, Alphabet
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