Qualcomm Inc (QCOM)

[TechWhiz]

Qualcomm (QCOM) Q3 Earnings Beat on Solid 5G Chip Traction

Zacks Equity Research
Thu, July 29, 2021, 8:34 AM

Qualcomm Incorporated QCOM reported solid third-quarter fiscal 2021 results driven by the ramp-up in 5G-enabled chips and surge in demand for essential products and services that are the building blocks for digital transformation in the cloud economy. Both the bottom line and the top line increased year over year and surpassed the Zacks Consensus Estimate, backed by the strength of the business model and the ability to respond proactively to the evolving market scenario.

Net Income

On a GAAP basis, net income in the June quarter more than doubled to $2,027 million or $1.77 per share from $845 million or 74 cents per share in the prior-year quarter. The significant improvement in GAAP earnings was primarily attributable to top-line growth driven by surging demand of 5G products across handsets, along with higher automotive and IoT revenues.

Quarterly non-GAAP net income came in at $2,200 million or $1.92 per share compared with $982 million or 86 cents per share in the year-ago quarter. Undeterred by the supply chain adversities, the non-GAAP earnings per share were largely driven by higher revenues across the board. The bottom line exceeded management’s guidance and beat the Zacks Consensus Estimate by 25 cents.

Revenues

On a GAAP basis, total revenues in the fiscal third quarter were $8,060 million compared with $4,893 million in the prior-year quarter. The radical increase in revenues was driven by 5G ramp up, chip design win momentum, RF front-end demand and rise in automotive and IoT revenues with diligent execution of operational plans and resilient business culture acting as catalysts. The GAAP revenues in the quarter exceeded the company’s guided range.

Non-GAAP revenues in the reported quarter were $7,995 million compared with $4,890 million in the year-earlier quarter. The figure beat the consensus mark of $7,576 million, driven by 5G strength, high-performing core chipsets and new RF front-end content.

https://finance.yahoo.com/news/qualcomm-qcom-q3-earnings-beat-123412115.html