Qualcomm (QCOM) Exceeds Earnings Expectations Despite Post-Market Stock Dip

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Feb 06, 2025
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Qualcomm (QCOM, Financial) has released its first-quarter financial results for fiscal year 2025, showcasing a strong performance that surpassed Wall Street expectations. The company reported a revenue of $11.669 billion, marking a 17% increase from the previous year's $9.935 billion. Net income rose 15% to $3.18 billion, with an adjusted net income of $3.83 billion, a 24% increase from the prior year.

Despite these positive results, Qualcomm's stock fell over 3% in after-hours trading. For the first quarter, the company achieved an adjusted diluted EPS of $3.41, exceeding analyst expectations of $2.97. Revenue from device and service sectors reached $9.942 billion, while licensing revenue grew to $1.727 billion.

In terms of business segments, Qualcomm's CDMA Technologies segment saw a 20% revenue increase to $10.084 billion, with pre-tax profits rising 25%. Revenue from headset equipment grew 13% to $7.574 billion, automotive business revenue surged 61% to $961 million, and IoT business revenue increased 39% to $1.549 billion. The Technology Licensing segment reported a 5% revenue increase to $1.535 billion.

Operational costs rose to $8.114 billion, with operating income at $3.555 billion. Qualcomm returned $2.7 billion to shareholders through dividends and stock buybacks. Looking ahead, Qualcomm anticipates second-quarter revenue between $10.3 billion and $11.2 billion, with an adjusted EPS forecast of $2.70 to $2.90, surpassing analyst expectations.

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I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.