Cristiano Amon, president of Qualcomm and Qualcomm CDMA Technologies, responds to a question during a panel discussion on 5G wireless broadband technology during the 2018 CES in Las Vegas, Nevada, U.S. January 10, 2018.
Steve Marcus | Reuters
Qualcomm’s revenue also beat Wall Street expectations despite a global chip shortage, driven by a 56% year-over-year boost in smartphone chip sales.
Here’s how Qualcomm did versus Refinitiv consensus expectations:
- EPS: $2.55, adjusted, vs. $2.26 expected, up 76% year-over-year.
- Revenue: $9.3 billion, adjusted, vs. $8.86 billion expected, up 43% year-over-year.
Qualcomm said it expected between $10 billion and $10.8 billion in sales in the current quarter, higher than the $9.68 billion expected by analysts.
QCT, Qualcomm’s chip business, reported $7.7 billion in revenue, up 56% year-over-year. The company attributed the growth to strong demand for chips for smartphones and handsets.
Qualcomm’s IoT business, which produces low-power chips to connect other devices to the internet, and is part of QCT, grew 66% to $1.5 billion. RF front-end chips, which are required to connect to 5G networks, grew 45% to $1.24 billion.
Qualcomm’s handset business was the second strongest growing product category in the quarter ending in December, with $4.69 billion in sales. Qualcomm expects to provide chips for as many as 550 million 5G smartphones in 2022.
Qualcomm’s automotive business remains the company’s smallest product category for chips. It grew 44% to $270 million, although the company announced several partnerships with automakers such as GM during the quarter.
The growth in Qualcomm’s chip division comes during a period of global shortages in many semiconductors needed to build computers and other devices.
“I find it interesting that the company grew this much during a supply-constrained environment,” Moor Insights analyst Patrick Moorhead said. “Some have said that Qualcomm’s multi-foundry approach was too complex, but now it’s looking very smart.”
QTL, the company’s profitable technology licensing division, was only up 3% on an annual basis to $1.55 billion in sales.
This news is developing. Please check back for updates.