Qualcomm Shares Gain Post Q2 Earnings Beat, Strong Q3 Outlook

Qualcomm, Inc. QCOM reported second-quarter FY22 revenue growth of 41% year-over-year to $11.16 billion, beating the consensus of $10.6 billion.
Adjusted EPS improved to $3.21 from $1.90 in 2Q22, above the consensus of $2.91.
QCT segment revenues increased by 52% Y/Y to $9.55 billion, the design win pipeline increased to more than $16 billion, and QTL revenue declined 2% Y/Y to $1.58 billion.
Handsets revenue is on track to grow >50% Y/Y in FY22. Increased premium-tier processor volume for Samsung’s Galaxy S22 smartphones to ~75%, up from ~40% in the Galaxy S21.
QCOM returned $1.7 billion to stockholders during the quarter, including $951 million through repurchases of 6 million shares.
The operating income improved by 78.1% YY to $3.86 billion, and the margin expanded 725 bps to 34.6%.
Adjusted EBIT margin improved to 38% from 32% in 2Q22.
QCOM generated cash from operating activities year-to-date of $4.76 billion, compared to $6.09 billion a year ago.
“As we expand outside handsets, we’re becoming more of a processor company than a connectivity company. Whether it’s cars or IoT devices, there’ ’s a lot of processing required. and we have the ability to bring connectivity and processing together and enable everything to talk to the car.” Qualcomm CFO Akash Palkhiwala told Benzinga.
“The phone is demanding a lot more content, especially on the processing side, and we are in a great position to offer that to our customers. so you’re seeing the higher bandwidth that we bring to the table show up in those numbers,” he added.
On the supply chain issues, Akash said, “we have identified challenges early, and as a result, was able to create second sources for parts and invest in additional capacity with current supply partners. As we move forward, we expect a better matching of demand and supply later in the year, so we’re pretty confident where we’re at.”
FY22 Outlook: Qualcomm expects Revenues of $10.5 billion - $11.3 billion vs. consensus of $9.98 billion, GAAP EPS of $2.35- $2.55 and Non-GAAP EPS of $2.75 - $2.95, vs. consensus of $2.59.
Price Action: QCOM shares are trading higher by 5.11% at $142 during the post-market session on Wednesday.

Market News and Data brought to you by Benzinga APIs

Comments

Earnings Calendar

Never Miss Important Catalysts

Popular Channels

Tools & Features

Partners & Contributors

About Benzinga