Investing com– Qualcomm (NASDAQ: QCOM) supplied better-than-expected support complying with financial fourth-quarter outcomes that covered Wall Street price quotes and chipmaker revealed a brand-new $15 billion supply buyback program as mobile phone chip need boosted.
Qualcomm leapt 7% in premarket trading Thursday.
Qualcomm reported modified incomes per watered down share of $2.69 on income of $10.24 B, pounding Wall Street approximates for readjusted EPS of $2.56 on income of $9.9 B.
The stronger-than-expected outcomes were driven more powerful efficiency in the firm’s phone chip system, which saw sales increase 12% versus the year-ago duration to $6.10 B.
Automotive chip sales, on the other hand, rose 68% to $899M in Q4 from a year previously, while income from Qualcomm’s Internet- of-Things system climbed 22% to $1.68 B.
For financial Q1, the firm projection readjusted EPS of $2.85 to $3.05 on income of $10.5 B to $11.3 B, or $10.9 B at the middle, compared to price quotes for $2.87 and $10.61 B, specifically.
“Results and outlook were likely much better than feared given recent peer reports, probably due to the company’s over-indexing to high end/flagship handsets which seem to be holding up better, as well as an adjacency story that really seems to be coming into its own,” Bernstein experts commented.
The company preserved an Outperform score and raised the target rate from $200 to $215.
Meanwhile, Deutsche Bank (ETR: DBKGn) experts stated while there is near-term advantage in QCOM shares, there “remain significant outstanding questions around March quarter seasonality, ongoing Apple (NASDAQ:AAPL) insourcing debate dynamics, pending ARM litigation, and more.
As such, the investment bank reiterated a Hold rating and a price target of $170 as it awaits updates on broader picture dynamics at Qualcomm’s upcoming analyst meeting on Nov. 19.
Yasin Ebrahim contributed to this report.
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