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• The chip maker expects revenue between $10.5 billion and $11.3 billion for the third quarter
Qualcomm Inc (NASDAQ: QCOM) beat second-quarter revenue and profit estimates on Wednesday, driving the shares up about 5% in after-hours trading.
For the third quarter, Qualcomm said it expects revenue between $10.5 billion and $11.3 billion, compared with analysts' estimates of $9.98 billion, according to IBES data from Refinitiv.
Qualcomm, which majorly depends on selling processors and modems for smartphones, has been diversifying its business away from handsets. Consumer spending has reduced on gadgets due to lockdowns in China and rising inflation.
Qualcomm’s handset business grew 56% on an annual basis to $6.33 billion in the second quarter indicating the chipmaker’s immunity amid slowdown in smartphones’ sales.
"The market in China is changing a bit. I think we're kind of less impacted by it because we're really focused on the premium and high-tier" smartphone market, Chief Executive Officer Cristiano Amon told Reuters.
Revenue from making chips for internet-powered gadgets posted 61% growth to $1.72 billion.
The company also partnered with automakers for its chip business such as Qualcomm’s deal with the automaker Stellantis to use its next-generation connected-car technology in the automaker’s vehicle lineup.
Qualcomm reported $339 million in automotive sales, up 41% annually.
The company said it posted adjusted revenue of $11.16 billion for the quarter ended March 27, above estimates of $10.6 billion.
Excluding items, Qualcomm earned $3.21 per share, compared to expectations of $2.91.
The company paid $764 million in cash dividends in the quarter and also repurchased $951 million worth of its shares.
Picture Credits: Reuters
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