Stocks Soar as Qualcomm's Rosy Forecast Sends Stock Prices Soaring

Qualcomm Inc. delivered a strong performance on Wednesday, surpassing Wall Street expectations for the upcoming quarter and increasing its share repurchase program by an additional $15 billion.

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The chipmaker projects revenue between $10.5 billion and $11.3 billion for its December quarter. This forecast places the midpoint of Qualcomm’s outlook significantly higher than analysts' consensus forecast, which was $10.6 billion according to FactSet. Additionally, Qualcomm anticipates adjusted earnings per share (EPS) in the range of $2.85 to $3.05, exceeding analysts' expectations of $2.86 per share. Following this announcement, Qualcomm’s stock surged 6.3% in after-hours trading on Wednesday.

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Fourth-Quarter Earnings Outperform Expectations

Qualcomm also shared positive results for its fiscal fourth quarter, with total revenue reaching $10.24 billion, a 19% year-over-year increase. This result outpaced analysts' expectations, which were set at $9.91 billion, according to FactSet data. Qualcomm’s QCT semiconductor division contributed $8.68 billion in revenue, while its QTL licensing business generated $1.52 billion, with both segments surpassing Wall Street’s estimates of $8.41 billion and $1.45 billion, respectively.

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The company reported net income of $2.92 billion, or $2.59 per share, nearly doubling its earnings from the previous year. Adjusted earnings per share increased by 33%, reaching $2.69, again exceeding analysts' projections of $2.56.

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Qualcomm's Stock Buyback Program Grows

Qualcomm has also been actively repurchasing its shares, buying back $4.1 billion in stock over its fiscal year, including $1.3 billion in the fourth quarter alone. The company had approximately $1 billion remaining under its previous buyback authorization, which has now been bolstered by an additional $15 billion through the latest expansion.

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CEO Cristiano Amon expressed optimism about Qualcomm's recent product announcements, highlighting its innovations at events like the Snapdragon Summit and Embedded World. These new products reinforce Qualcomm’s strong position across various sectors, including handsets, PCs, automotive, and the industrial Internet of Things (IoT) market.

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Qualcomm’s advancements in technology are expected to strengthen its foothold in these sectors and position the company for further growth as demand for its semiconductors and related technologies rises across different industries. Qualcomm plans to hold an investor day on November 19, where it will provide additional insights into its business strategy and future prospects.

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