Qualcomm(US:QCOM) Huachuang Securities·2024-11-08 12:55Investment Rating - The report assigns a positive investment rating to Qualcomm, indicating strong performance expectations for the upcoming quarters [2][41]. Core Insights - Qualcomm's Q4 FY2024 performance exceeded expectations, driven by flagship model shipments and diversified business strategies, with revenues reaching $10.2 billion, a year-over-year increase of 18% [2][5]. - The automotive chip segment continues to set records, with revenue of $899 million, reflecting a quarter-over-quarter increase of 11% and a year-over-year increase of 68% [2][10]. - The IoT business saw significant growth, with revenues of $1.7 billion, up 21% year-over-year, attributed to new product launches and inventory normalization [2][9]. - Qualcomm's guidance for Q4 FY2024 anticipates revenues between $10.5 billion and $11.3 billion, representing a year-over-year growth of 6% to 14% [2][19]. Revenue and Profitability - In Q3 FY2024, Qualcomm reported revenues of $10.244 billion, with a net profit of $2.92 billion, leading to a GAAP EPS of $2.59 and a Non-GAAP EPS of $2.69 [5][6]. - The QCT segment generated $8.7 billion in revenue, with a pre-tax profit margin of 28%, benefiting from strong growth in IoT and automotive sectors [6][11]. - The QTL segment achieved revenues of $1.5 billion, with a pre-tax profit margin of 74%, aligning with expectations [11][20]. Business Segment Developments - The PC segment is expanding with the launch of the Snapdragon X Plus 8 platform, which is expected to enhance performance and battery life for OEMs [12][24]. - XR products are gaining traction, with new offerings like the Quest 3S providing affordable options for mixed reality experiences [12][15]. - Qualcomm's automotive business is leveraging new platforms like Snapdragon Cockpit Elite and Snapdragon Ride Elite, which are designed for AI and advanced driver-assistance systems [15][26]. Future Guidance - Qualcomm expects Q4 FY2024 revenues to be between $10.5 billion and $11.3 billion, with adjusted EPS projected between $2.85 and $3.05 [2][19]. - The QCT segment is anticipated to generate revenues of $9 billion to $9.6 billion, with a pre-tax profit margin of 29% to 31% [19][20]. - The automotive segment is projected to grow by 50% year-over-year, while the IoT segment is expected to see over 20% growth [19][20].