Qualcomm (QCOM) posted fiscal fourth-quarter earnings that exceeded analysts' expectations and announced a $15 billion stock buyback, driving shares higher after the closing bell Wednesday. The chipmaker reported fourth-quarter revenue of $10.24 billion, up 19% year-over-year and above the analyst consensus from Visible Alpha. Net income was $2.92 billion or $2.59 per share, compared to $1.49 billion or $1.32 per share a year ago and beating Wall Street projections. The revenue gains came as handset semicon ...

Fourth Quarter and Fiscal 2024 Earnings November 6, 2024 Note Regarding Forward-Looking Statements 2 In addition to historical information, this document and the conference call that it accompanies contain forward-looking statements that are inherently subject to risks and uncertainties, including but not limited to statements regarding: our growth and diversification opportunities, including those in automotive, IoT and the artificial intelligence (AI) space; our business, product and technology strategies ...

Revenue Concentration and Customer Dependency - The company derives a significant portion of its revenues from a small number of customers and licensees, particularly from premium tier handset devices, which poses a risk if revenues fluctuate[9] - In fiscal 2024, revenues from Apple, Samsung, and Xiaomi each comprised 10% or more of Qualcomm's consolidated revenues[37] - Qualcomm derives a significant portion of its revenues from a small number of customers and licensees, particularly from premium tier handset devices[9] Market Trends and Technology Integration - The company anticipates that 46% of smartphones sold in 2027 will be generative AI capable, up from 19% in 2024, indicating a significant market shift towards AI integration[22] - By 2027, at least 50% of PCs sold are expected to be AI capable, up from 22% in 2024[24] - The automotive sector is projected to see 67% of new vehicles produced by 2030 featuring embedded cellular connectivity, with 48% having 5G connectivity, up from 11% in 2024[24] - The demand for edge networking products is driven by advancements in wireless technology, with 5G enabling high-speed, low-latency connections for both mobile and fixed wireless users[24] Research and Development Focus - The company is focused on extending its technologies and products into new areas beyond mobile handsets, with ongoing investments in research and development that may not meet future operational expectations[10] - Qualcomm has invested heavily in research and development, leading to the evolution of foundational technologies in mobile, automotive, and IoT sectors[25] - Qualcomm continues to invest in research and development across various technologies, including AI, with a focus on power efficiency and personalization[38] - Qualcomm's research and development efforts focus on enhancing existing products and developing new technologies across various industries, including automotive and IoT[38] Competitive Landscape and Market Position - The company is subject to intense competition and rapid technological changes, which could affect demand for its products and technologies[13] - The competitive landscape includes major players like Broadcom, MediaTek, and Nvidia, with increasing competition from customers developing their own integrated circuit products[34] - Qualcomm's focus on innovation and patent development supports the growth of 5G technology and multimode device capabilities[34] Supply Chain and Operational Risks - The company faces risks related to supply chain dependencies on a limited number of third-party suppliers, which could impact operational results[11] - The company employs a fabless production model, relying on third-party manufacturers for integrated circuits, with major suppliers located in the Asia-Pacific region[32] - The semiconductor industry is highly cyclical, and Qualcomm is susceptible to significant downturns and fluctuations in economic conditions[16] Environmental and Social Responsibility - The company aims to reduce absolute Scope 1 and Scope 2 GHG emissions by 30% from a 2014 base year by 2025[41] - Qualcomm has set a goal to reduce absolute Scope 1 and 2 GHG emissions by 50% by 2030 from a 2020 base year[41] - Qualcomm's employee networks support diversity and inclusion, focusing on women, LGBTQ+ employees, and underrepresented populations[43] - The company has established a net-zero GHG emissions target across the value chain by 2040[41] Employee Engagement and Development - Qualcomm's workforce consists of approximately 49,000 employees, with a voluntary turnover rate of about 5% during fiscal 2024[42] - The company provides a variety of health and wellness programs through its Live+Well and Work+Well initiatives, focusing on physical and mental health[43] - Significant resources are invested in talent development, including training opportunities and performance management methodologies[43] - Human capital advancements will influence executive bonuses for fiscal 2024, with a modifier range of 0.9 to 1.1 based on performance[43] Strategic Investments and Acquisitions - Strategic investments and acquisitions are made to support new product introductions and enhance existing services[30] - Qualcomm's strategic investments through Qualcomm Ventures focus on expanding opportunities in 5G, AI, automotive, and IoT sectors[35] - The company may engage in strategic acquisitions, which could affect its results of operations and stockholder value[10] Intellectual Property and Licensing - The company has significant intellectual property assets, including patents related to CDMA and OFDMA technologies, which are crucial for its business model[21] - Qualcomm's patent portfolio is recognized as essential for 3G, 4G, and 5G technologies, driving industry growth and innovation[35] - Qualcomm's QTL segment generates significant licensing revenues from cellular standard-essential patents, primarily from sales of OFDMA-based products[35] Technology Development and Product Offerings - Qualcomm's QCT segment focuses on developing integrated circuit platforms and system software for mobile devices, automotive systems, and IoT, contributing significantly to revenue generation[21] - Qualcomm's Snapdragon platforms integrate advanced connectivity and high-performance computing technologies, supporting AI, security, and multimedia applications[32] - Qualcomm's QCT segment focuses on RF products, including 5G modem-RF products that integrate AI to enhance data speeds and battery life[32]

Financial Performance - Fiscal 2024 GAAP revenues reached $39.0 billion, with a GAAP EPS of $8.97, reflecting over 20% growth in EPS year-over-year[1] - Fourth quarter revenues were $10,244 million, a 19% increase from $8,631 million in Q4 Fiscal 2023[2] - Net income for Fiscal 2024 was $10,142 million, up 40% from $7,232 million in Fiscal 2023[3] - QCT segment revenues in Q4 Fiscal 2024 were $8,678 million, an 18% increase from $7,374 million in Q4 Fiscal 2023[4] - Automotive revenue grew by 68% year-over-year in Q4, reaching $899 million, and 55% for the full fiscal year at $2,910 million[6] - Total revenues for the three months ended September 29, 2024, increased to $10,244 million, up 18.7% from $8,631 million for the same period last year[18] - Net income for the twelve months ended September 29, 2024, was $10,110 million, compared to $7,339 million for the previous year, representing a 37.9% increase[19] - Operating income for the three months ended September 29, 2024, was $2,581 million, a significant increase from $1,411 million in the same quarter last year, reflecting an 83% growth[18] - Basic earnings per share from continuing operations for the three months ended September 29, 2024, were $2.62, compared to $1.46 for the same period last year, representing an increase of 79.5%[18] - The net income for Q4 Fiscal 2024 was $2,920 million, compared to $1,489 million in Q4 Fiscal 2023, showing a substantial increase[22] - Diluted EPS for Q4 Fiscal 2024 was $2.59, up from $1.32 in Q4 Fiscal 2023, representing a growth of 96.2%[22] Guidance and Projections - Guidance for Q1 FY25 estimates revenues between $10.5 billion and $11.3 billion, with GAAP diluted EPS projected at $2.39 to $2.59[10] - Non-GAAP EPS for Q1 FY25 is expected to be between $2.85 and $3.05, reflecting strong operational performance[10] - The company expects continued growth in revenues and operating income driven by advancements in technology and market expansion strategies[23] Expenses and Investments - Research and development expenses for the twelve months ended September 29, 2024, totaled $8,893 million, slightly up from $8,818 million in the previous year[18] - Research and development expenses for Fiscal 2024 totaled $8,893 million, with $2,024 million excluded for share-based compensation[24] - Selling, general and administrative expenses for Fiscal 2024 were $2,759 million, with $535 million excluded for share-based compensation[24] Assets and Liabilities - Total current assets increased to $25,231 million from $22,464 million, marking a 12.4% growth year-over-year[16] - Total liabilities decreased to $28,880 million from $29,459 million, indicating a reduction of 2%[17] - Cash and cash equivalents at the end of the period were $7,849 million, down from $8,527 million, reflecting a decrease of 7.9%[19] - The company reported a total stockholders' equity of $26,274 million, up from $21,581 million, which is a 21.7% increase[17] - The company generated net cash provided by operating activities of $12,202 million, compared to $11,299 million in the previous year, reflecting an increase of 8%[19] Tax and Profitability - The effective tax rate for Q4 Fiscal 2024 was 12.2%, compared to 16.5% in Q4 Fiscal 2023, reflecting a decrease in tax burden[22] - Qualcomm's EBT as a percentage of revenues for Q4 Fiscal 2024 was 25%, compared to 16% in Q4 Fiscal 2023, indicating improved profitability[22] Stock Repurchase - The company announced a new $15.0 billion stock repurchase authorization, in addition to the remaining $1.0 billion from the previous program[8] Product Development - The company highlighted its recent product announcements at Snapdragon Summit and Embedded World, emphasizing technology leadership across multiple sectors[1]

Key TakeawaysQualcomm is set to report earnings after the bell Wednesday, with analysts expecting growth in revenue and a larger bump in profits.Analysts mostly have neutral ratings on the software and hardware maker, but still believe the stock has the ability to rise in the coming months.However, JPMorgan analysts on Tuesday said a sluggish smartphone and PC market could slow Qualcomm's revenue growth in its next fiscal year. Qualcomm (QCOM) will report its fourth quarter earnings after the market closes ...

Qualcomm Incorporated (QCOM) is scheduled to report fourth-quarter fiscal 2024 earnings on Nov. 6, 2024. The Zacks Consensus Estimate for revenues and earnings is pegged at $9.9 billion and $2.56 per share, respectively. Earnings estimates for QCOM have improved from $10.05 per share to $10.08 for 2024 and from $10.92 per share to $10.93 for 2025 over the past 90 days.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.QCOM Estimate TrendImage Source: Zacks Investment ResearchEarnings Sur ...

QUALCOMM Inc. (QCOM) is a global leader in the fabless semiconductor space, focusing on 5G mobile network technology. QCOM is increasingly focusing on the seamless transition from a wireless communications firm for the mobile industry to a connected processor firm for the intelligent edge. QUALCOMM operates through three segments — QCT (QUALCOMM CDMA Technologies), QTL (QUALCOMM Technology Licensing) and QSI (QUALCOMM Strategic Initiatives). The tech giant is set to release its fourth-quarter fiscal 2024 ea ...

Wall Street analysts forecast that Qualcomm (QCOM) will report quarterly earnings of $2.56 per share in its upcoming release, pointing to a year-over-year increase of 26.7%. It is anticipated that revenues will amount to $9.9 billion, exhibiting an increase of 14.7% compared to the year-ago quarter.The current level reflects an upward revision of 0.3% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their ...

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Qualcomm. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

These two partners have less than two months to agree.There's a single company behind some of the biggest chip designers in the world, and it wields a lot of power in the industry.Arm Holdings' (ARM 4.36%) intellectual property is essential for producing chips for a wide range of products from the smartphone in your pocket to the data centers training next-generation artificial intelligence (AI). It licenses its CPU architecture and IP to clients and receives licensing fees and royalties in return.It's now ...