Positive news for the smartphone market: Qualcomm's revenue last quarter exceeded expectations with an 18% increase, and guidance for this quarter may see double-digit growth again | Earnings report insights

Smartphone chip giant Qualcomm's sales growth in the last quarter was stronger than Wall Street expectations, and guidance indicates that it may maintain double-digit growth this quarter, exceeding market expectations, signaling that demand in the high-end smartphone market remains robust. However, the stock price fluctuated and turned down after hours.

On February 5th, Eastern Time, Qualcomm announced its fiscal Q1 2025 results (referred to as Q4) for the period ending December 29, 2024, while also providing guidance for fiscal Q2 2025 (referred to as Q1) for the period ending March this year. Fiscal Q4 2024 is referred to as Q3.

1) Key Financial Data

Revenue: Adjusted revenue for Q4 under non-GAAP standards was $11.67 billion, a year-on-year increase of 18%. Qualcomm's guidance was $10.5 billion to $11.3 billion, while analysts expected $10.93 billion, with a year-on-year growth of 19% in Q3.

EPS: Adjusted earnings per share (EPS) for Q4 was $3.41, a year-on-year increase of 24%. Qualcomm's guidance was $2.85 to $3.05, while analysts expected $2.97, with a year-on-year growth of 33% in Q3.

EBT: Pre-tax profit for Q4 was $4.43 billion, a year-on-year increase of 24%, with a year-on-year growth of 33% in Q3.

2) Revenue by Segment

QCT: Revenue from the semiconductor business (QCT), primarily including mobile, automotive, and Internet of Things (IoT) chip products, was $10.08 billion in Q4, a year-on-year increase of 20%, with a year-on-year growth of 18% in Q3.

QTL: Revenue from the technology licensing business (QTL), responsible for intellectual property licensing, was $1.54 billion in Q4, a year-on-year increase of 5%, with a year-on-year growth of 21% in Q3.

3) Performance Guidance

Revenue: Revenue for Q1 is expected to be between $10.3 billion and $11.2 billion, with analysts expecting $10.35 billion. The QCT revenue guidance is $8.9 billion to $9.5 billion, and the QTL guidance is $1.25 billion to $1.45 billion.

EPS: Adjusted EPS for Q1 is expected to be between $2.70 and $2.90, with analysts expecting $2.69.

After the earnings report was released, Qualcomm's stock price, which had risen over 1.6%, initially expanded its gains to nearly 5% after hours but then turned down, falling over 3% after hours.

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