The San-Diego-based tech giant, Qualcomm Inc reported its earnings for the quarter ending September 27, 2020, which it calls the last quarter of the fiscal year 2020. The company posted revenues and earnings per share that beat the expectations of the analysts by quite a margin and is a huge increase from the same time last year. As a result, Qualcomm’s share prices skyrocketed more than 15% in extended-hours trading at $145.6 per share.
In Q4 2020, Qualcomm earned revenues worth $6.5 billion, up 35% from Q4 2019 when it reported revenues of $4.8 billion. The latest revenue numbers from Qualcomm easily beat Wall Street’s prediction of $5.93 billion. Furthermore, the company reported $1.45 earnings per share as compared to the estimates of $1.17 earnings per share made by analysts. Earnings per share too significantly rose by 86% from last year ($0.78). Whereas, the net income also increased by 76% to $1.67 billion in Q4 2020.
Steve Mollenkopf, CEO of Qualcomm said, “Our fiscal fourth-quarter results demonstrate that our investments in 5G are coming to fruition and showing benefits in our licensing and product businesses. We concluded the year with exceptional fourth-quarter results and are well-positioned for growth in 2021 and beyond. As the pace of disruption in wireless technology accelerates, we will continue to drive growth and scale across our RF front-end, Automotive and IoT adjacencies.”
Qualcomm Technologies (QCT), a subsidiary of Qualcomm Inc which includes the chip, IoT, automotive, and other tech businesses of Qualcomm, reported the highest revenues of $4.9 billion out of all its businesses. QCT revenues were up by 38% from last year when it was $3.6 billion.
On the other hand, Qualcomm Technology Licensing (QTL), the other subsidiary that handles licensing and patenting of the company’s technology to others, recorded sales worth $1.5 billion in Q4 2020. This is a 30% increase from last year when the QTL sales were at $1.15 billion.
Overall, in the whole FY 2020, Qualcomm Inc earned $21.6 billion in revenues, up by 12% from last year, and $4.19 in earnings per share, up by 18% from 2019.
For the upcoming Q1 of FY 2021, Qualcomm has predicted revenues of $7.8 – $8.6 billion and $1.95 – $2.15 in earnings per share. Of the total revenue, Qualcomm says QCT will contribute $6.2 – $6.8 billion, whereas, QTL will contribute $1.6 – $1.8 billion.
The company said, “Starting with our fourth quarter and fiscal 2020 results, we will provide a revenue breakout by Handsets, RF front-end, Automotive and IoT for the QCT segment. Beginning in fiscal 2021, we will no longer provide MSM chip shipment guidance or actual results.”