Qualcomm Surges 6% on Strong Q4 Earnings, Announces $15 Billion Stock Buyback Program

Qualcomm Reports Strong Q4 Earnings and $15 Billion Buyback Program

Overview
Qualcomm reported impressive Q4 results, surpassing Wall Street expectations, and announced a new $15 billion stock buyback, sending shares up 6% in aftermarket trading. Increased demand for smartphone chips contributed to these strong earnings.

Quarterly Earnings Beat Expectations
Qualcomm posted adjusted earnings per share (EPS) of $2.69 on revenue of $10.24 billion, outpacing analysts’ estimates of $2.56 EPS and $9.9 billion in revenue. Key segments of Qualcomm's business, including smartphone, automotive, and Internet-of-Things (IoT) chips, performed exceptionally well.

• Handset Chip Revenue: Qualcomm’s smartphone chip division led with a 12% revenue boost, reaching $6.1 billion compared to the previous year.
• Automotive Chip Sales: Automotive revenue surged by 68% year-over-year to $899 million, driven by growing demand in the smart vehicle sector.
• Internet-of-Things: IoT revenues increased 22% to $1.68 billion, reflecting Qualcomm's expanding presence in connected devices.

Optimistic Fiscal Q1 Guidance
For fiscal Q1, Qualcomm forecasts adjusted EPS between $2.85 and $3.05 on revenue ranging from $10.5 billion to $11.3 billion. This guidance centers around $10.9 billion, slightly ahead of market expectations.