San Diego, California – Qualcomm, a leading technology company, reported its quarterly earnings, surpassing LSEG consensus estimates. In the quarter ending in March, the company announced adjusted earnings per share of $2.44, compared to the expected $2.32, and adjusted revenue of $9.39 billion, exceeding the expected $9.34 billion.
During the quarter, Qualcomm reported a net income of $2.33 billion, or $2.06 per share, up from $1.7 billion, or $1.52 per share, in the same period the year before. The company offered a sales forecast of between $8.8 billion and $9.6 billion for the current quarter, higher than the Wall Street prediction of $9.05 billion, along with an earnings guidance range of $2.15 to $2.35 per share.
Qualcomm’s handset business, which includes processors, modems, and other smartphone components, experienced a 1% increase in sales to $6.18 billion. The company noted a strong demand for “premium tier” smartphones, particularly in China, driving a 40% annual increase in revenue from Chinese phone makers during the quarter.
The company’s automotive business showed growth, with chip sales to automakers rising 35% year-over-year to $603 million. However, Qualcomm’s “Internet of Things” business, which includes lower-cost chips and virtual reality components, decreased by 11% to $1.24 billion.
Qualcomm’s chip business, known as QCT, saw a 1% increase in sales to $8.03 billion, with its licensing business, QTL, reporting a 2% annual rise to $1.32 billion. The company also paid out $895 million in dividends and repurchased $731 million in shares during the quarter, leading to an increase in its quarterly dividend to 85 cents from 80 cents.
The company’s focus on providing advanced chips for AI-powered smartphones, such as Samsung’s Galaxy S24 Ultra, has positioned Qualcomm well in the market. With a strong performance in key business areas and positive growth trends, Qualcomm continues to demonstrate its leadership in the technology sector.