Qualcomm (QCOM) stock is trading higher Thursday after the integrated circuits specialist beat top- and bottom-line expectations for its fiscal 2024 fourth quarter and provided a strong outlook for its fiscal first quarter.
In the three months ended September 29, Qualcomm's revenue increased 18.7% year over year to $10.2 billion. Its earnings per share (EPS) rose 33.2% from the year-ago period to $2.69.
"We are pleased to conclude the fiscal year with strong results in the fourth quarter, delivering greater than 30% year-over-year growth in EPS," said Qualcomm CEO Cristiano Amon in a statement. "We are excited about our recent product announcements at Snapdragon Summit and Embedded World, as they continue to extend our technology leadership and position us well across Handsets, PC, Automotive and Industrial IoT [Internet of Things]."
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The results easily beat analysts' expectations. Wall Street was anticipating revenue of $9.9 billion and earnings of $2.56 per share, according to Yahoo Finance.
For its fiscal 2025 first quarter, Qualcomm said it expects to achieve revenue in the range of $10.5 billion to $11.3 billion and earnings per share of $2.85 to $3.05. The midpoints of these ranges, $10.9 billion and $2.95 per share, came in ahead of analysts' expectations for revenue of $10.6 billion and earnings of $2.86 per share.
Qualcomm also announced that its board of directors approved a new $15 billion share repurchase authorization, which works out to roughly 8% of its current market cap. Stock buybacks can help boost the share price.
Where does Qualcomm stand with analysts?
Qualcomm had a strong start to 2024 and was up more than 50% for the year to date in June. Shares have since pared their year-to-date lead to 20%, but Wall Street remains bullish on the tech stock.
According to S&P Global Market Intelligence, the average analyst target price for QCOM stock is $210.12, representing implied upside of more than 20% to current levels. Additionally, the consensus recommendation is Buy.
Financial services firm Stifel is one of the more bullish outfits on QCOM stock with a Positive rating (equivalent to a Buy) and a $230 price target.
"Qualcomm has defined the cutting-edge cellular standard by consistently 'moving the goal posts' in baseband capabilities for the last two decades," says Stifel analyst Christopher Rolland in a note this morning. "Every time a competitor matches Qualcomm's technology, they quickly add important new 'table-stakes' features. Additionally, the company's efforts around diversification are paying off as the company transcends handsets."
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