Qualcomm (Qcom) Q1 2025 Profit Report

Qualcomm He reported fiscal results of the first quarter better than expected on Wednesday and issued a solid orientation for the current period.

This is how the chips manufacturer did versus the consensus estimates of LSE for the quarter ending on December 29:

• Profit per action: $ 3.41, adjusted, compared to $ 2.96 estimated
• Revenue: $ 11.67 billion compared to $ 10.93 billion estimated

Income in the quarter increased 18% of $ 9.92 billion a year ago. The shares increased more than 1% in the extended trade.

For the quarter of March, Qualcomm said that it expects income of between $ 10.2 billion and $ 11 billion, which at its midpoint leads LSE’s expectations of $ 10.34 billion. The company expects adjusted profits between $ 2.70 and $ 2.90 per share. Half of the range is higher than Wall Street estimate of $ 2.69 per share.

Qualcomm said that net income increased by 15% to $ 3.18 billion, or $ 2.83 per share of $ 2.77 billion, or $ 2.46 per share, a year earlier.

The company’s adjusted earnings figure excluded elements, such as the expected income, resulting from the liquidation of a dispute, articles related to the acquisition, as well as research and development expenses.

The three final Qualcomm markets for their chips grew during the quarter. Its QCT division, which includes sales of physical chips, increased 20% to $ 10.1 billion.

The most important market for Qualcomm are mobile phones, which grew 13% annually to $ 7.57 billion in sales. Analysts surveyed by FACTSET were looking for $ 7.04 billion in telephone sales, or a growth of approximately 5%.

The fastest growing market for Qualcomm is its automotive business, which grew 61% to $ 961 million in sales, since long -term contracts for the company’s pieces and software become recorded income.

Qualcomm saw a great demand from customers in China for the expensive intelligent telephones “Premium level,” said CEO Christian Amon to Kristina Partsinevelos of CNBC. The company also benefited from the last Samsung Galaxy device using Qualcomm processors exclusively.

Qualcomm’s “IoT” business includes low power chips for industrial purposes, as well as chips that Qualcomm is sold to Goal To feed your search headphones and your relatively new Snapdragon Elite chips for Windows laptops. The first Qualcomm laptop chips were launched last year.

The company’s income from the company’s business grew 36% during quarter to $ 1.55 billion.

Qualcomm also has a license business, called QTL, where other technology companies pay for access to its intellectual property related to 5G and cell technology. Qualcomm reported $ 1.54 billion in sales in the division, and had signed the remarkable transception of Chinese smartphone manufacturers to a 4G license, as well as negotiations completed for long -term licenses with two other Chinese manufacturers.

Qualcomm said he paid $ 942 million in dividends and spent $ 1.8 billion in shares during the quarter.