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]."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free 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
-
4 Black Friday Scams to Watch Out forThe deals are heating up, but so are the scams. Here's how to spot some of the most common Black Friday scams this holiday season.
-
Ramit Sethi Tells Us the Biggest Retirement Mistake You Can MakeThe MasterClass instructor, author and behavioral finance expert on what could be costing retirees their happiness.
-
Holidays Are a Rich Time to Talk Money With Young Adults: A Financial Adviser's Guide for ParentsThe most productive family financial conversations start with open-ended questions and a lot of listening. Don't let this opportunity pass you by.
-
How Women of Wealth Are Creating a New Model of Giving Through Family OfficesWomen who are inheriting wealth today are shifting from traditional philanthropy to creating sustainable systems to fund philanthropic gifts into perpetuity.
-
I'm a Financial Planner: This Retirement GPS Helps With Navigating Your Drawdown PhaseReady to retire? Here's how to swap your 'peak earnings' mindset for a 'preserve-plus-grow' approach instead of relying on the old, risky 4% rule.
-
Donating Stock Instead of Cash Is the 2-for-1 Deal You'll Love at Tax TimeGiving appreciated stock or using a donor-advised fund (DAF) this year would be smarter than writing a check to support your favorite causes. Here's why.
-
Traveling With Purpose: What Zambia and Zimbabwe Taught Us About Slowing DownDon't treat retirement trips like they're an exercise in ticking off boxes. Slowing down and letting adventure unfold can create more meaningful memories.
-
Investment Expert: Is Your Retirement Portfolio Too Late to the Profit Party?If you're following the usual retirement investment model, you could be missing out on a potential profit period that companies see in the run-up to their IPOs.
-
Losing Your Job? A Financial Planner's 6 Steps to Survive and ThriveWhether pink slips are just rumors at your company or layoffs have already landed, there are things you can do today to make the best of a tough situation.
-
Oil Prices vs Investor Returns: It's What's Beneath the Surface That CountsEngineering, geology and operating discipline can determine the success of oil and gas projects as much as the cost per barrel.
