Qualcomm’s second fiscal quarter performance exceeded expectations, with both revenue and net profit increasing
Qualcomm’s second fiscal quarter performance exceeded expectations, with both revenue and net profit increasing. Qualcomm’s revenue for the fiscal quarter was 11.164 billion U.S. dollars, a year-on-year increase of 41%, setting a historical record, with a net profit of 2.934 billion U.S. dollars. Qualcomm’s second quarter performance exceeded expectations, with both revenue and net profit increasing. Qualcomm's second quarter performance exceeded expectations, with both revenue and net profit increasing by 1
After the market closed on Wednesday (27th) Eastern Time, the global mobile chip giant Qualcomm released a strong second quarter performance report, in which Both revenue and earnings per share exceeded Wall Street analysts' expectations.
Qualcomm closed up 1.2 points on Wednesday, at $135.1. Boosted by the positive earnings report, the stock continued to rise by more than 6% in after-hours trading.
The financial report showed that Qualcomm’s adjusted revenue in the second fiscal quarter was US$11.16 billion, higher than the expected US$10.6 billion, a year-on-year increase of 41%; adjusted earnings per share was 3.21 USD, also higher than the expected USD 2.91, a year-on-year increase of 69.
Looking at specific businesses, its most important chip business unit QCT (Qualcomm CDMA Technologies) reported sales of US$9.55 billion, higher than analysts’ expectations of US$8.86 billion, a year-on-year increase of 52%; Technology Revenue from the licensing unit QTL reached $1.58 billion, which was also slightly higher than analysts’ expectations of $1.55 billion, a year-on-year decrease of 2.
When it comes to performance guidance, Qualcomm said it expects third-quarter earnings per share to be between US$2.75 and US$2.95, with revenue of approximately US$10.9 billion. The company's forecast topped Wall Street's revenue guidance of $9.98 billion.
It is reported that Qualcomm generates most of its revenue from the sale of smartphone processors and modems, as well as the licensing of cellular network connection technology.
The company’s strong results on Wednesday came amid broader market skepticism about chip company results in 2022 and whether chip companies can continue to benefit from strong demand and supply during the new coronavirus pandemic. Limited favorable situation.
Qualcomm has emphasized to investors that the company can become a chip supplier in many other markets and can diversify beyond its main mobile phone chip business.
All four major markets showed growth
Qualcomm’s four major chip markets all achieved growth in the fiscal quarter ending in March.
The mobile phone market is the largest market for Qualcomm chips, with a year-on-year increase of 56% to US$6.33 billion. That suggests smartphone sales may be slowing in an inflationary environment, but the major Android chip maker has yet to be affected. Secondly, the radio frequency front-end business, a business focused on 5G connectivity chips, grew by 28% to $1.16 billion.
Currently, sales in the automotive market are still small, but the company remains optimistic that its collaboration with automakers and suppliers will lead to more growth. Qualcomm Automotive Division sales were US$339 million, a year-on-year increase of 41%. Revenue from Sweden-based Veoneer, a U.S. automotive technology provider recently acquired by Qualcomm, was not included in the quarter ended in March.
In addition, the Internet of Things business, which produces low-power and low-cost chips, increased by 61% to $1.72 billion.
Qualcomm also said that it paid $764 million in cash dividends during the quarter and repurchased shares worth $951 million. Qualcomm's second quarter performance exceeded expectations, with revenue and net profit increasing by 2%.
On April 27, local time in the United States, Qualcomm released its second quarter financial report for fiscal year 2022.
The report shows that Qualcomm’s revenue for the quarter was US$11.164 billion, a year-on-year increase of 41%, setting a historical record; net profit was US$2.934 billion, a year-on-year increase of 67%; adjusted net profit was US$3.661 billion, a year-on-year increase of 67%. Growth 68. Qualcomm's revenue and adjusted diluted earnings per share exceeded Wall Street analysts' expectations for the fiscal quarter.
Qualcomm’s long-term flagship product is smartphone processors, and it also supplies baseband chips for Apple’s iPhone, so its business performance is more susceptible to the impact of terminal demand. The financial report shows that Qualcomm’s mobile phone chip revenue increased by 56% to US$6.33 billion.
There have been voices in the market that Qualcomm’s growth will be threatened as demand for Android phones in China slows down, but Qualcomm’s mobile phone chip revenue last quarter was higher than Wall Street analysts had expected Estimated at $5.99 billion.
In order to reduce its dependence on specific markets, Qualcomm has implemented a diversification strategy and actively expanded into fields such as automobiles and the Internet of Things. Recently, it has also increased investment in the personal computer market.
Qualcomm said that its Internet of Things and automotive businesses grew rapidly in the first fiscal quarter, boosting performance. Qualcomm's IoT smart device chip revenue increased by 61% to $1.72 billion in the quarter. Automotive chip sales rose 41% to $339 million.
Currently, BMW, General Motors and Renault are Qualcomm’s main automaker customers. Qualcomm provides advanced driver assistance systems (ADAS), communication processing, digital cockpit, infotainment and other related technologies. Qualcomm also provides chips for wireless fixed-line operators and said it is cooperating with 125 companies to develop wireless fixed-line access products.
In addition to selling chips and software, Qualcomm also collects patent fees by providing communication patent technology licenses, which is the Qualcomm Technology Licensing (QTL) business. This quarter, Qualcomm QTL’s revenue fell slightly by $2 to $1.58 billion.
In the past year or so, amid the shortage of global wafer foundry capacity, Qualcomm has adopted a strategy of giving priority to ensuring the shipment of 5G and flagship products, but the main foundry Samsung's 4nm yield rate is lower than expected, coupled with the impact of the COVID-19 epidemic and the situation in Europe, Qualcomm's shipments have been restricted to a certain extent.
This year, it is reported in the supply chain that Qualcomm will transfer the foundry order of the new 5G flagship chip "Snapdragon 8 Plus" from Samsung to TSMC, which will be produced using TSMC's 4nm process and will be shipped as soon as April. Volume increased in the third quarter. However, Qualcomm and TSMC declined to comment.
Qualcomm CEO Cristiano Amon said that this quarter’s results reflect the company’s results in the execution of its growth and diversification strategies, as well as the strong market demand for processor technology.
Anmon said that Qualcomm has three-quarters of Samsung's Galaxy S22 series mobile phones, compared with only 40 in the previous generation of mobile phones. Typically, nearly half of Samsung's Galaxy S series phones use self-developed chips. In addition, Qualcomm also provides integrated chips to Chinese smartphone manufacturers such as Xiaomi, OPPO and Honor.
Looking forward to fiscal year 2022, Qualcomm expects that its smartphone business will grow by more than 50%, benefiting from Samsung’s Galaxy series flagship phones and some Chinese smartphone suppliers.
Strong profit prospects and record single-quarter revenue stimulated Qualcomm’s stock price to rise by 7.3 in after-hours trading. The stock rose $1.20 to $135.10 during regular trading on Wednesday. Qualcomm's second fiscal quarter results exceeded expectations, with revenue and net profit increasing by 3%
Qualcomm released its second fiscal quarter financial report for 2022. Data show that Qualcomm’s revenue this quarter was US$11.164 billion (approximately 73.3 billion yuan), a year-on-year increase of 41%, setting a historical record; net profit was US$2.934 billion (approximately 19.3 billion yuan), a year-on-year increase of 68%, revenue and profit Both rose sharply.
Qualcomm CDMA Technology Group’s revenue this quarter reached US$9.548 billion, a year-on-year increase of 52%.
Among them, revenue from handheld devices was US$6.325 billion, a year-on-year increase of 56%; revenue from the radio frequency front-end business was US$1.16 billion, a year-on-year increase of 28%; revenue from the automotive business was US$339 million, a year-on-year increase of 41%; revenue from the physical Revenue from the networking business was US$1.724 billion, a year-on-year increase of 61%.
It can be seen from the financial report that Qualcomm’s performance is in a state of vigorous development, especially Snapdragon 5G chip products, with revenue soaring by 56%. Although competitor MediaTek's performance this quarter is also very impressive, Qualcomm has not been greatly affected, with revenue reaching a new high and profits soaring.
In the past few years, the mid-to-high-end Android mobile phone market can be seen as a battlefield where Qualcomm Snapdragon and Huawei HiSilicon Kirin compete with each other. The two are locked in a fierce battle. Although MediaTek also has a large market share, due to its weakness in performance, it can basically only appear on some mid-to-low-end models, and misses the market in the price range above 3,000 yuan.
However, since Huawei’s mobile phone business was restricted and HiSilicon Kirin chips were unable to be produced, Qualcomm Snapdragon instantly lost its competitors and rapidly expanded in the mid-to-high-end market, annexing the market space vacated by Huawei. For a time, the high-end market was almost dominated by Qualcomm Snapdragon, and its performance in the past two years has also been growing rapidly.
However, MediaTek has also developed rapidly in the past two years. The birth of the Dimensity series 5G chips, especially the emergence of the Dimensity 700/800 series, has helped MediaTek quickly occupy the market. mid- to low-end 5G mobile phone market and expand its market share. In the second half of 2020, MediaTek's share of the global mobile phone SOC market finally caught up with Qualcomm and became the world's number one.
This year, MediaTek once again brought two products of the Dimensity 9000/8000 series to compete with the Snapdragon 8 series in the high-end market. It can be seen that MediaTek has completely caught up with Qualcomm in terms of processor performance and market share, and Qualcomm is facing increasing competitive pressure.