Core Insights - Qualcomm reported Q3'24 adjusted EPS of $2.33, exceeding consensus estimates of $2.25, and provided a strong Q4'24 forecast of $2.45-2.65/share [1][5] - Revenue growth in Q3'24 was driven by a significant increase in handset revenue (up 87%) and automotive revenue (up 12%) within the QCT segment [1][4] - The company is optimistic about future growth, particularly in the automotive sector, projecting revenue to reach $4 billion by 2026 [4] Financial Performance - Q3'24 adjusted EPS was $2.33, beating estimates, with a strong forecast for Q4'24 of $2.45-2.65/share [1][5] - Total revenue for Q4'24 is expected to be between $9.5-10.3 billion, representing a year-over-year increase of 10-19% [5] - For the full fiscal year 2024, Qualcomm is projected to generate $38.34 billion in revenue and adjusted EPS of $10.06/share [6] Segment Analysis - The handset segment is expected to benefit from premium smartphone sales, with management forecasting low single-digit growth driven by AI-enabled devices [3][7] - The automotive segment saw a remarkable 87% year-over-year revenue growth in Q3'24, with expectations for continued growth due to increased content per vehicle [4] - Industrial IoT is anticipated to experience low double-digit growth, supported by partnerships like the one with Aramco for advanced IoT solutions [4] Market Outlook - Qualcomm's management remains optimistic about the premium smartphone market, despite a flat overall handheld market forecast [3] - The company has extended its licensing agreement with Apple through 2027, which may enhance its position in the AI-enabled device market [3] - Despite challenges in the automotive and smartphone markets, Qualcomm expects to benefit from additional content per device and regional expansion, particularly in China [7] Valuation and Investment Perspective - Qualcomm shares are valued at $202.80/share based on a 21.32x eFY25 price/aEarnings multiple, with an upgrade to a BUY rating [1][11] - The company trades at a lower multiple compared to peers like AMD and Nvidia, which may limit short-term growth potential [9] - The stock is expected to retrace to around $150 before resuming growth, presenting a potential buying opportunity [13]

Core Viewpoint - Qualcomm's investment story remains strong despite recent stock pullback, driven by future growth in Automotive and AI PCs rather than current results [1][6] Financial Performance - For FQ3'24, Qualcomm reported a Non-GAAP EPS of $2.33, beating estimates by $0.07, and revenue of $9.39 billion, reflecting an 11.3% year-over-year increase [2] - Handset sales grew by 12%, while Automotive sales surged by 87% to reach $811 million [2] Market Opportunities - The IoT segment is poised for significant growth with the launch of AI PCs, which began in June [2] - Qualcomm's Copilot+ PCs powered by Snapdragon X series have been launched at 47 retailers across 20 devices, indicating strong market entry [2] - Qualcomm captured 20% of the PC market during the launch week, primarily due to long battery life [2] Future Projections - Qualcomm is guiding for FQ4 revenues potentially exceeding $10 billion, with expectations of substantial growth in Automotive and AI PC segments [2] - The company forecasts nearly $9 billion in combined business from Automotive and AI PCs, with an Automotive order book projected at $30 billion [2] - Automotive sales are expected to reach $2.8 billion in FY24, with projections of $4 billion in 2026 and $5 billion in 2027 [2] Valuation and Analyst Sentiment - Qualcomm's stock is currently trading at only 1.5 times FY25 EPS targets, indicating a low valuation relative to its growth potential [4] - Analysts have set a price target of $235 for Qualcomm, suggesting significant upside potential [5] Investment Strategy - The stock remains undervalued despite strong quarterly performance and positive guidance, presenting a buying opportunity for investors [6]

About this content About Josh Lamb After graduating from the University of Kent in the summer of 2022 with a degree in History, Josh joined Proactive later that year as a journalist in the UK editorial team. Josh has reported on a range of areas whilst at Proactive, including energy companies during a time of global crisis, aviation and airlines as the sector recovers from the pandemic, as well as covering economic, social and governance issues. Read more About the publisher Proactive financial news and ...

Wednesday, July 31st, 2024Markets closed higher today, in the wake of the latest Fed meeting. The Federal Open Market Committee (FOMC), followed by Fed Chair Jerome Powell’s press conference this afternoon, gave no surprises to the market. What it did was allow speculation to continue that rate cuts are indeed on the horizon. The Dow closed +99 points, +0.24%, while the Nasdaq zoomed up +451 points, +2.64%. The S&P 500 and small-cap Russell 2000 were +1.58% and +0.51%, respectively.The Fed’s press release f ...

Qualcomm Incorporated (QCOM) reported strong third-quarter fiscal 2024 results, with the bottom and top lines beating the respective Zacks Consensus Estimate, driven by healthy demand trends in Android handsets and automotive businesses. Both metrics improved year over year, led by the strength of the business model, revenue diversification and the ability to respond proactively to the evolving market scenario. Management expects a steady improvement in the demand trajectory in the remainder of fiscal 2024 ...

Financial Data and Key Metrics Changes - The company reported non-GAAP revenues of $9.4 billion and non-GAAP earnings per share of $2.33, exceeding the midpoint of guidance [7][17] - Revenues from the chipset business were $8.1 billion, reflecting growth in automotive and IoT sectors [7][17] - Licensing business revenues were $1.3 billion with an EBT margin of 70% [17] Business Line Data and Key Metrics Changes - Automotive revenues reached a record $811 million, with a sequential growth of 34% [17] - IoT revenues increased by 9% sequentially to $1.4 billion, indicating a gradual recovery in the industry [17] - Handset revenues were $5.9 billion, reflecting over 50% year-over-year growth from Chinese OEMs [17] Market Data and Key Metrics Changes - The premium smartphone tier in China grew from 21% to 31% of the market, indicating a significant shift towards higher-priced devices [44] - The overall handset market is expected to remain flat to slightly up in 2024, but the premium tier is expanding [44] Company Strategy and Development Direction - The company is focused on diversifying its revenue streams, particularly in automotive and PC markets, with a goal of reaching $4 billion in automotive revenue by 2026 [25][68] - The Snapdragon Digital Chassis is positioned as a key asset for the automotive industry, integrating AI capabilities for enhanced user experiences [8][10] - The company plans to unveil a dedicated product roadmap for industrial IoT in the coming months [15][68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the automotive sector's growth, driven by new design wins and the integration of Gen AI use cases [25][26] - The company anticipates that AI will drive competitive differentiation across various sectors, including industrial and automotive [21][68] - The upcoming Snapdragon Summit is expected to reveal advancements in AI capabilities for mobile devices [10] Other Important Information - The company returned $2.3 billion to stockholders during the quarter, including $1.3 billion in stock repurchases and $949 million in dividends [18] - A long-term licensing agreement was signed with Honor, a leading Chinese smartphone OEM, reflecting the company's diversification efforts [16] Q&A Session Summary Question: Automotive revenue growth and future momentum - Management indicated that automotive revenue is expected to continue growing as new vehicles with Qualcomm technology are launched, with a strong pipeline of design wins [24][25] Question: Expectations for the PC market - Management expressed optimism about the PC market, noting that initial sales of Copilot+ PCs have exceeded expectations, with some models sold out [26] Question: Demand for AI smartphones - Management noted a growing demand for smartphones with AI features, particularly in the premium tier, and expects this trend to continue [28][30] Question: Impact of Huawei licensing on revenue - Management acknowledged the revocation of the Huawei export license, which will impact revenues but highlighted growth in other areas such as IoT and automotive [19][31] Question: Guidance for the December quarter - Management expects the December quarter to be seasonally strong, driven by new product launches and a return to typical growth patterns [39][41] Question: Addressable market in compute - Management clarified that the addressable market includes both consumer and enterprise laptops, with a forecast that 50% of PCs sold by 2027 will be AI-capable [60][62] Question: Gross margins outlook - Management indicated that gross margins are expected to remain flat year-over-year, with ongoing diversification efforts impacting the overall margin structure [57]

Qualcomm (QCOM) came out with quarterly earnings of $2.33 per share, beating the Zacks Consensus Estimate of $2.25 per share. This compares to earnings of $1.87 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.56%. A quarter ago, it was expected that this chipmaker would post earnings of $2.30 per share when it actually produced earnings of $2.44, delivering a surprise of 6.09%.Over the last four quarters, the company has sur ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _____________________ FORM 10-Q _____________________ (Mark one) ☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 23, 2024 OR ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number 0-19528 QUALCOMM Incorporated (Exact name of registrant as specified in its charter) Dela ...

Exhibit 99.1 FOR IMMEDIATE RELEASE Qualcomm Contact: Mauricio Lopez-Hodoyan Vice President, Investor Relations Phone: 1-858-658-4813 | e-mail: ir@qualcomm.com Qualcomm Announces Third Quarter Fiscal 2024 Results Revenues: $9.4 billion GAAP EPS: $1.88, Non-GAAP EPS: $2.33 —Greater Than 20% Year-Over-Year Growth in EBT— —QCT Automotive: 87% Year-Over-Year Growth in Revenues— SAN DIEGO - July 31, 2024 - Qualcomm Incorporated (NASDAQ: QCOM) today announced results for its fiscal third quarter ended June 23, 202 ...

Qualcomm Incorporated (QCOM) is scheduled to report third-quarter fiscal 2024 earnings on Jul 31. The Zacks Consensus Estimate for revenues and earnings is pegged at $9.19 billion and $2.25 per share, respectively. Earnings estimates for QCOM have improved from $9.58 per share to $9.89 for 2024 and from $10.48 per share to $10.96 for 2025 over the past 90 days.QCOM Estimate TrendImage Source: Zacks Investment ResearchEarnings Surprise HistoryThe chip manufacturer delivered a four-quarter earnings surprise o ...