Qualcomm Rises on 5G Lift
April 28 2021 - 5:53PM
Dow Jones News
By Maria Armental
Qualcomm Inc. benefitted from high demand for 5G smart phones,
which boosted quarterly sales by 52%, as the mobile-phone chip
company moved to assure its access to semiconductors in the face of
global supply chain disruptions.
Shares rose 5% to $144.03 in after-hours trading.
Cristiano Amon, the company's president who is slated to take
over as chief executive following Steve Mollenkopf's planned
retirement, said that while demand continues to outstrip supply
across businesses, company officials expect material improvement in
supply by the end of 2021.
Qualcomm, Mr. Amon said, has also picked up business from
China's Huawei Technologies Co., which is subject to U.S. trade
restrictions.
The mobile-phone chip maker reported nearly $8 billion in sales
in the March quarter, while profit for the quarter surged to $1.76
billion, ahead of analysts' projections.
Revenue in the licensing business, a key profit driver, rose 51%
in the quarter, while sales in the chip business rose 53%.
This quarter, Qualcomm projects $7.1 billion to $7.9 billion in
sales, compared with analysts' projected $7.12 billion, according
to FactSet.
Patrick Moorhead, president of technology-industry analysis firm
Moor Insights & Strategy, called Qualcomm's results a "monster
quarter."
"It's not just digital modems, its smartphone analog RF (+39%),
automotive (+40%) and an eye-watering 71% growth in its IoT
business," he wrote Wednesday.
Qualcomm reported more than $4 billion in sales of chips for
handsets and again surpassed $1 billion in quarterly sales of chips
that go into internet-of-things devices.
Through Wednesday's $136.57 closing, Qualcomm's stock is up more
than 80% over the past 12 months.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
April 28, 2021 18:38 ET (22:38 GMT)
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