Wireless-chip leader Qualcomm late Wednesday topped analyst estimates for its fiscal fourth quarter and guided above views for the current period. QCOM stock popped higher in extended trading.
The San Diego-based company earned an adjusted $2.02 a share on sales of $8.63 billion in the quarter ended Sept. 24. Analysts polled by FactSet had expected Qualcomm earnings of $1.91 a share on sales of $8.51 billion. However, on a year-over-year basis, Qualcomm earnings dropped 35% while sales sank 24%.
Qualcomm's fiscal Q4 report marked its fourth straight quarter of declining sales and earnings on a year-over-year basis as it rides out a downturn in smartphone sales.
For the current quarter, Qualcomm predicted adjusted earnings of $2.35 a share on sales of $9.5 billion. That's based on the midpoint of its guidance. Wall Street had been modeling earnings of $2.22 a share on sales of $9.19 billion. In the year-earlier period, Qualcomm earned $2.37 a share on sales of $9.46 billion.
QCOM Stock Rises After Report
In after-hours trading on the stock market today, QCOM stock climbed 3.6% to 114.90. During the regular session Wednesday, QCOM stock advanced 1.7% to close at 110.89.
"As we enter fiscal 2024, we are pleased with our road map and product execution, which position us well across our businesses," Chief Executive Cristiano Amon said in a news release.
He added, "Our recent Snapdragon Summit announcements underscore our technology leadership, establishing Qualcomm as a leader in on-device generative AI and mobile computing performance."
Silicon Labs Lowers Outlook
Elsewhere among semiconductor stocks, Silicon Labs plummeted 5.4% to 87.17 on Wednesday after the chipmaker narrowly beat its third-quarter targets but slashed expectations for the current period.
In the third quarter, Silicon Labs earned an adjusted 62 cents a share, down 49% year over year, on sales of $203.8 million, down 24%. Wall Street had been looking for earnings of 61 cents a share on sales of $200.1 million.
However, for the fourth quarter, Silicon Labs now expects to lose an adjusted $1.44 a share on sales of $85 million. Analysts polled by FactSet had predicted a profit of 67 cents a share on sales of $206.5 million in the December quarter. In the year-earlier period, Silicon Labs earned $1.31 a share on sales of $257.3 million.
"The current demand environment remains quite weak as we navigate this cyclical inventory correction, and end market visibility continues to be challenging," Chief Executive Matt Johnson said in a news release.
Silicon Labs ranks No. 16 out of 37 stocks in IBD's fabless semiconductor industry group, according to IBD Stock Checkup. QCOM stock ranks seventh in the group.
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