Qualcomm Earnings: QCOM Stock Soars 14% on Q3 EPS, Revenue Beats

QCOM blew past EPS and revenue estimates

Qualcomm (NASDAQ:QCOM) earnings for the semiconductor company’s fiscal third quarter of 2020 have QCOM stock taking off after-hours Wednesday. That’s due to adjusted earnings per share of 86 cents beating out Wall Street’s estimate of 71 cents. Adding to this is its revenue of $4.89 billion, which is better than analysts’ estimate of $4.81 billion.

Qualcomm (QCOM) logo on white sign in green grassy yard
Source: Akshdeep Kaur Raked / Shutterstock.com

Now, let’s take a closer look at the most recent Qualcomm earnings report.

  • Adjusted per-share earnings are up 8% from 80 cents during the same time last year.
  • Revenue for the quarter is sitting 49.3% lower than the $9.64 billion reported in the fiscal third quarter of 2019.
  • Operating income of $782 million is an 85.3% drop year-over-year from $5.32 billion.
  • Net income reported in the Qualcomm earnings comes in at $845 million.
  • That’s a 60.7% decline compared to the company’s net income of $2.15 billion reported in the same period of the year prior.

Steve Mollenkopf, CEO of Qualcomm, said this about the current earnings results.

“We delivered earnings above the high end of our range, continued to execute in our product and licensing businesses and entered into a new long-term patent license agreement with Huawei, all of which position us well for the balance of 2020 and beyond.”

Qualcomm includes guidance for its fiscal fourth quarter of 2020 in the earnings report. This has it expecting an adjusted EPS of $1.05 to $1.25 on revenue between $7.3 billion and $8.1 billion. Wall Street’s estimates are for adjusted EPS and revenue of $1.10 and $5.78 billion during the quarter.

QCOM stock was up 14.4% after markets closed on Wednesday and was up 1.7% at the end of normal trading hours.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2020/07/qualcomm-earnings-boost-qcom-stock-higher/.

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