Qualcomm Shares Surge as Smartphone Demand Stabilizes, Predicts Stronger Q1 Results Amid Easing Market Slump
Strong results driven by increasing Chinese smartphone sales and improved Android business; company sees decline slowing down with 35% quarter-on-quarter rise in sales to Chinese smartphone customers predicted.
- Qualcomm's shares jumped over 6% following the release of better-than-expected results, which were driven by signs of recovery in mobile phone sales and an increase in demand for Qualcomm chips.
- Revenue for the fourth quarter of 2023 was reported at $8.67 billion, showing a 24% fall year-on-year, yet higher than forecasts. Earnings per share for the same quarter were posted at $2.02.
- A decline of 26% and 12% was recorded in sales at the Qualcomm TEchnology Company (QTC) and Qualcomm Technology Licensing (QTL) divisions respectively, indicating stabilization in global handset demand.
- Qualcomm anticipates the current quarter earnings per share (EPS) to be $2.25, with revenues between $9.1 to $9.9 billion. This surpasses analysts' expectations who were expecting an EPS of $2.23 and a revenue of $9.2 billion.
- With enhanced demand from China and improved business in the Android sector, Qualcomm is expecting a sales increase of 35% quarter-on-quarter to Chinese smartphone customers accompanied by a slowdown in market decline.
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