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Why Qualcomm’s stock flow is growing today



What happened

Promotions Qualcomm (NASDAQ: QCOM) jumped on Thursday after the semiconductor company announced its third-quarter fiscal results. Qualcomm beat analysts widely and announced a patent license agreement with Huawei. Shares rose about 11.9% at 11:20 p.m. EDT.

So what

Qualcomm reported third-quarter revenue of $ 4.89 billion, almost the same as in previous years, when revenue recognized last year under peace agreements with Apple and its contract manufacturers. Revenue from the chip business increased 7% to $ 3.81 billion, while revenue from the licensing segment decreased 19% to $ 1.04 billion. Total revenue was about $ 1

00 million higher than analysts had expected.

Chips on the board.

Image source: Getty Images.

Non-GAAP (adjusted) earnings per share were $ 0.86, up from $ 0.80 in the prior-year period and $ 0.15 higher than the average analyst estimate. Revenues before taxes in the chip business jumped 20%, while in the EBT licensing business fell 28%.

Qualcomm signed a long-term global patent license agreement with Huawei in July. The company expects to recognize $ 1.8 billion in revenue in the fourth fiscal quarter related to the agreement, which includes Huawei’s sales from 2020 onwards. The beginning.

What’s now

Qualcomm expects adjusted revenue, excluding Huawei’s patent contract revenue, of $ 5.5 billion to $ 6.3 billion in the fourth quarter. This includes revenue from chips of $ 4.3 billion to $ 4.9 billion and license revenue from $ 1.2 billion to $ 1.4 billion. The company sees an adjusted EPS of $ 1.05 to $ 1.25.

Qualcomm’s recommendations assume that COVID-19 has reduced phone shipments by 15%, and at the same time name the nameless global 5G flagship phone, which is believed to be Apple’s future 5G iPhone. Reports indicate that mass production of new Apple iPhones is delayed.

Including Thursday’s rally, Qualcomm shares have largely offset all the losses caused by the pandemic. Shares of the chip company are now just under 52 weeks.




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