Wireless-chip maker Qualcomm (QCOM) late Wednesday trounced Wall Street’s targets for its fiscal second quarter thanks to strong smartphone sales. It also guided higher for the current quarter. Qualcomm stock jumped in extended trading.
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The San Diego-based company earned an adjusted $1.90 a share on sales of $7.94 billion in the quarter ended March 28. Analysts expected Qualcomm earnings of $1.67 a share on sales of $7.62 billion. On a year-over-year basis, Qualcomm earnings soared 116% while sales increased 52%.
“We delivered another quarter of year-over-year growth driven by sustained demand for smartphones globally and our ability to increase the scale of our non-handset revenues,” Qualcomm Chief Executive Steve Mollenkopf said in a news release.
For the current quarter, Qualcomm expects to earn an adjusted $1.65 a share on sales of $7.5 billion. That’s based on the midpoint of its outlook. Wall Street had predicted Qualcomm earnings of $1.52 a share on sales of $7.11 billion in the June quarter. In the year-earlier period, Qualcomm earned 88 cents a share on sales of $5.22 billion.
Qualcomm Stock Jumps In Late Trades
In after-hours trading on the stock market today, Qualcomm stock rose 5.5%, near 144. During the regular session Wednesday, Qualcomm stock sank 1% to 136.57.
Qualcomm stock has been consolidating for the past 14 weeks after hitting an all-time high of 167.94 on Jan. 20.
Qualcomm stock ranks No. 14 out of 30 stocks in IBD’s fabless semiconductor industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 74 out of 99. The Composite Rating — an easy way to identify top growth stocks — is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths.
MaxLinear, Other Chipmakers Post Results
In addition to Qualcomm stock, other semiconductor stocks reporting March-quarter earnings on Wednesday included Impinj (PI), MaxLinear (MXL) and Silicon Labs (SLAB).
MaxLinear and Silicon Labs delivered beat-and-raise reports. Meanwhile, Impinj topped estimates with its first-quarter results but its guidance was mixed.
Carlsbad, Calif.-based MaxLinear earned 55 cents a share on sales of $209.4 million in the first quarter. On a year-over-year basis, MaxLinear earnings rocketed 686% while sales soared 238%. MaxLinear makes radio frequency, analog, digital and mixed-signal integrated circuits.
Austin, Texas-based Silicon Labs earned an adjusted 91 cents a share on sales of $255.5 million in the March quarter. On a year-over-year basis, Silicon Labs earnings rose 32% while sales climbed 19%. Silicon Labs makes wireless connectivity chips for Internet of Things applications.
Seattle-based Impinj earned an adjusted 1 cent a share on sales of $45.2 million in the first quarter. The maker of tracking chips returned to non-GAAP profitability in the period, but sales fell for the fourth consecutive quarter on a year-over-year basis.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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