Qualcomm’s income results for the fiscal year 2024’s last quarter were impressive, since the company was able to surpass the Wall Street expectations for earnings and revenue, unequivocally. The stock soared a great deal in after-hours trading on Wednesday thanks to the strong numbers, boosted by growth in several business verticals.
The Company posted earnings per shares for the quarter ending September 29 of $2.69 as the market consensus was at $2.56. Also, its quarterly revenue was higher than what market analysts had predicted as it stood at $10.24 billion while the market anticipations were at $9.90 billion. However, despite the operational difficulties encountered, an impressive net income of $2.92 billion or $2.59 a share was realized compared to $1.49 billion or $1.23 in Q4 2023. For the financial year 2024, Qualcomm reported an increase in total sales volume of $33.19 billion which is 9% higher than the previous period.
Qualcomm has also mentioned that the outlook for its December quarter is also remarkable with available revenues peaking at between $10.5 billion and $11.3 billion. The middle of this range is higher than the market consensus of 10.59 billion supporting a firm positive advice for the company in the next period.
Qualcomm’s performance growth was particularly boosted by an increase in sales of handset chips by 12 percent, which reached 6.1 billion dollars, as predicted by market analysts. The firm unveiled its newly designed Snapdragon 8 Elite chip for premium Android devices in the month of October, which is anticipated to spur even greater growth in the segment of handsets. Also, Qualcomm noted an increase of over 20 percent year-on-year in revenues coming from Android, the mobile vertical also being an important factor in the firm’s performance.
Qualcomm under the direction of CEO Cristiano Amon has emerged as a company that is no longer just a smartphone company. The firm has invested extensively in chips for PCs, cars, and other industries. The company’s automotive unit reported an annual increase in sales of 86 percent to $899 million, with the current quarter showing prospects of further growth. Qualcomm has seen its Internet of Things (IoT) revenue, which includes chips for industrial use and also for instance headsets such as the Meta Quest and smart glasses like Ray-Ban, increase by 22%. To facilitate maximum returns to shareholders, the Board of Directors has taken the decision to increase the amount set aside for share repurchases by an additional $15 billion. In the last quarter this company spent $1.3 billion on share buyback and also paid $947 in dividends to its shareholders.
