Shares of Qualcomm Inc. rallied in the extended session on Wednesday, after the chipmaker’s results and outlook beat Wall Street estimates following some recent share downgrades. Qualcomm QCOM, shares -1.04% rose 5% after hours, following a 1% drop in the regular session to close at $ 136.57.
Qualcomm reported fiscal second quarter net income of $ 1.76 billion, or $ 1.53 per share, compared to $ 468 million, or 41 cents per share, in the same period last year. Adjusted earnings, which exclude share-based compensation expenses and other items, were $ 1.90 per share, compared to 88 cents per share in the same period last year. Revenue increased to $ 7.94 billion from $ 5.21 billion in the prior year quarter. Analysts surveyed by FactSet had forecast earnings of $ 1.67 per share on revenue of $ 7.62 billion, based on Qualcomm’s forecast of $ 1.55 to $ 1.75 per share on revenue of $ 7.2 billion. million to $ 8 billion. “Demonstrating the robustness of our strategy and our success in execution, we achieved another quarter of year-over-year growth driven by sustained demand for smartphones globally and our ability to scale up our non-mobile phone revenue,” said Steve. Mollenkopf. Qualcomm’s outgoing CEO, in a statement. “Looking ahead, Qualcomm is well positioned for continued growth and we remain confident in our ability to execute on the many opportunities before us.” In early January, Qualcomm said that company president Cristiano Amon will succeed Mollenkopf as CEO on June 30. Qualcomm said its wireless and mobile business, which includes 5G chips and phone sales, rose 53% to $ 4.07 billion from a year ago, while sales of mobile device antenna chips, or RF front-end products, rose. 39% to 903 million dollars compared to the quarter of the previous year. Qualcomm shares have seen some downgrades of late. More recently, Susquehanna Financial analyst Christopher Rolland downgraded Qualcomm’s shares to a neutral rating because “trusted contacts” suggested that Apple Inc.’s AAPL, -0.60%, increased its momentum. to be more independent on modem and RF components and a “revamped MediaTek 2454, + 1.41% of portfolio presents significant future risks” for Qualcomm. That follows a downgrade to an online rating from Evercore analyst ISI CJ Muse, who said that most of the 5G smartphone upgrade cycle is already priced at Qualcomm shares and that competition is getting tougher. Still, Qualcomm forecast adjusted Q3 earnings of $ 1, 55 to $ 1.75 per share on revenue of $ 7.1 billion to $ 7.9 billion, while analysts estimated $ 1.52 per share on revenue of $ 7.12 billion. months, Qualc’s shares omm have risen 81%, compared to a gain of 86% for the PHLX Semiconductor Index SOX, -1.46%, an increase of 46% for the S&P 500 SPX Index, -0.08% and a gain of 63 %. on the high-tech Nasdaq Composite COMP index, -0.28%.