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]."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
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."
Related Content
-
How Caregivers for Adults Can Save on Taxes in 2025Tax Breaks Caring for your parent or spouse can be stressful, but the IRS offers tax breaks for qualifying taxpayers. Here they are.
-
The Stock Market Is Selling Off. Here's What Investors Should DoInvestors are fleeing the equities market en masse in response to the Trump administration's "jaw-dropping" tariffs. But the experts say don't panic.
-
The Stock Market Is Selling Off. Here's What Investors Should DoInvestors are fleeing the equities market en masse in response to the Trump administration's "jaw-dropping" tariffs. But the experts say don't panic.
-
How Building Liquidity Into Your Retirement Plan Can Pay OffTo succeed in investing for retirement, you need time and discipline — liquidity can give you both.
-
Striking Oil in Opportunity Zones: Now Might Be the Best Time to InvestYou could unlock hidden wealth in QOZs with strategic oil and gas investments, potentially combining tax advantages with long-term growth in an essential industry.
-
Stock Market Today: It's the Old Up-Down Again on Liberation DayMarkets look forward to what comes with the reordering of 80-year-old global trade relationships.
-
Can a New Manager Cure Vanguard Health Care Fund?Vanguard Health Care Fund has assets of $40.5 billion but has been ailing in recent years. With a new manager in charge, what's the prognosis?
-
What You Don't Know About Annuities Can Hurt YouLack of awareness leads many to overlook these potent financial tools, and with the possibility of running out of money in retirement, that could really hurt.
-
Three Keys to Logical Investing When Markets Are VolatileFocusing on these market fundamentals can help investors stay grounded rather than being swayed by emotion or market hysteria.
-
Yes, the Markets Are Spooked, But You Don't Have to BeIt's human nature for investors to freak out in a downturn. But with a little discipline, you can overcome the urge to sell and stay focused on long-term goals.
