Investing com– Qualcomm (NASDAQ: QCOM) equipped better-than-expected assist complying with monetary fourth-quarter outcomes that lined Wall Street worth quotes and chipmaker revealed a brand-new $15 billion provide buyback program as cell phone chip want boosted.
Qualcomm leapt 7% in premarket buying and selling Thursday.
Qualcomm reported modified incomes per watered down share of $2.69 on earnings of $10.24 B, pounding Wall Street approximates for readjusted EPS of $2.56 on earnings of $9.9 B.
The stronger-than-expected outcomes had been pushed extra highly effective effectivity within the agency’s telephone chip system, which noticed gross sales enhance 12% versus the year-ago period to $6.10 B.
Automotive chip gross sales, then again, rose 68% to $899M in This autumn from a 12 months beforehand, whereas earnings from Qualcomm’s Internet- of-Things system climbed 22% to $1.68 B.
For monetary Q1, the agency projection readjusted EPS of $2.85 to $3.05 on earnings of $10.5 B to $11.3 B, or $10.9 B on the center, in comparison with worth quotes for $2.87 and $10.61 B, particularly.
“Results and outlook were likely much better than feared given recent peer reports, probably due to the company’s over-indexing to high end/flagship handsets which seem to be holding up better, as well as an adjacency story that really seems to be coming into its own,” Bernstein consultants commented.
The firm preserved an Outperform rating and raised the goal charge from $200 to $215.
Meanwhile, Deutsche Bank (ETR: DBKGn) consultants acknowledged whereas there’s near-term benefit in QCOM shares, there “stay vital excellent questions round March quarter seasonality, ongoing Apple (NASDAQ:AAPL) insourcing debate dynamics, pending ARM litigation, and extra.
As such, the funding financial institution reiterated a Hold score and a worth goal of $170 because it awaits updates on broader image dynamics at Qualcomm’s upcoming analyst assembly on Nov. 19.
Yasin Ebrahim contributed to this report.
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