Proactive Investors - San Diego-based technology giant Qualcomm (NASDAQ:QCOM) Inc (NASDAQ:QCOM, ETR:QCI), the leading global vendor of smartphone processors, has reported robust earnings and raised its quarterly dividend, signaling a potential recovery in handset demand.
The company posted earnings per share of $2.44, surpassing analyst estimates of $2.32, while quarterly sales stood at $9.40 billion, slightly exceeding the projected $9.34 billion.
For the upcoming quarter ending in June, Qualcomm anticipates revenue in the range of $8.8 billion to $9.6 billion, with earnings per share expected to be between $2.15 and $2.35.
The optimistic outlook suggests a rebound in demand following a prolonged downturn, aligning with Qualcomm's expectations of a gradual recovery in the smartphone market throughout 2024.
The announcement buoyed investor confidence, leading to a 4% surge in Qualcomm's stock during after-hours trading. The company's shares had already seen a 13% increase year-to-date, closing at $164.03 in New York prior to the earnings report.
Under the leadership of CEO Cristiano Amon, Qualcomm has been diversifying its product portfolio beyond phone chips into areas such as personal computers and automotive technology. However, the smartphone segment remains a cornerstone of its business, particularly in markets like China.
While Qualcomm's smartphone revenue experienced a modest 1% growth in the last quarter, its automotive sales surged by 35%. Conversely, the Internet of Things (IoT) division faced challenges, with revenue contracting by 11% due to inventory imbalances.
Qualcomm's core product, the processor powering numerous flagship smartphones globally, underscores its pivotal role in the mobile technology landscape. Moreover, the company derives substantial revenue from licensing essential mobile network technologies, further solidifying its position in the industry.