Wireless-chip leader Qualcomm beat expectations for its fiscal second quarter and guided higher than views for the current period. Qualcomm stock jumped Thursday on the news.
The San Diego-based company late Wednesday said it earned an adjusted $2.44 a share on sales of $9.39 billion in the quarter ended March 24. Analysts polled by FactSet had expected Qualcomm earnings of $2.33 a share on sales of $9.35 billion. On a year-over-year basis, Qualcomm earnings increased 13% while sales climbed 1%.
For the current quarter, Qualcomm expects to earn an adjusted $2.25 a share on sales of $9.2 billion. That's based on the midpoint of its guidance. Analysts were looking for earnings of $2.18 a share on sales of $9.06 billion in the fiscal third quarter. In the June quarter last year, Qualcomm earned an adjusted $1.87 a share on sales of $8.44 billion.
"We are pleased to report strong quarterly results, with EPS (earnings per share) exceeding the high end of our guidance," Chief Executive Cristiano Amon said in a news release.
He added, "We are excited about our continued growth and diversification, including achieving our third consecutive quarter of record QCT (Qualcomm CDMA Technologies) Automotive revenues, upcoming launches with our Snapdragon X platforms, and enabling leading on-device AI capabilities across multiple product categories."
Qualcomm Stock Pops After Report
On the stock market today, Qualcomm stock jumped 9.7% to close at 180.10.
With the move, Qualcomm stock broke out of a flat base at a buy point of 177.59, according to IBD MarketSurge charts.
Meanwhile, other semiconductor stocks exposed to the smartphone market have struggled recently amid weak handset sales.
For instance, Skyworks Solutions stock plunged Wednesday after the company reported a modest March-quarter beat but guided much lower than views for the June quarter. Skyworks shares dropped 15.3% to 90.30 on the news. On Thursday, Skyworks dropped 0.7% to close at 89.68.
Qorvo, another wireless-chip maker, reported its fiscal fourth-quarter results late Wednesday. It beat its March-quarter targets but whiffed with its June-quarter sales and earnings outlook. On Thursday, Qorvo stock tumbled 14.5% to 95.67.
Qualcomm stock ranks fifth out of 39 stocks in IBD's fabless semiconductor industry group, according to IBD Stock Checkup. Further, Qualcomm stock is on the IBD Tech Leaders list.
Meanwhile, Qorvo ranks eighth out of 33 stocks in IBD's semiconductor manufacturing industry group. And Skyworks is 17th in the chipmaker group.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
