Qualcomm (NASDAQ:) Incorporated (NASDAQ: QCOM) reported third-quarter earnings and revenue that exceeded analyst expectations and provided optimistic guidance for the fourth quarter.
The company’s third-quarter earnings per share (EPS) came in at $2.33, beating analyst consensus by $0.08. Revenue for the quarter was also higher than expected at $9.39 billion, compared to the consensus estimate of $9.21 billion.
The chipmaker’s shares initially rose in after-hours trading after the report, but later lost those gains and fell 1.7% in Thursday’s premarket.
Qualcomm expects next-quarter earnings per share of $2.45 to $2.65, with the $2.55 midpoint beating the $2.45 consensus estimate.
The company’s revenue forecast of $9.5 billion to $10.3 billion also beats the consensus of $9.71 billion, indicating potential continued growth.
“The company is gaining market share in premium Android handsets, Automotive Cockpit and PC,” Rosenblatt analysts said.
“The next phase of AI growth is at the network edge. We see the company, as well as its strong position for AI and Gen AI applications, expanding into these network edge markets,” they added, raising their price target on QCOM shares from $240 to $250.
President and CEO Cristiano Amon highlighted the successful execution of Qualcomm’s growth strategy and the high-quality performance of QCT quarterly revenue and EBT margins.
Amon also expressed enthusiasm for the launch of the Snapdragon
Meanwhile, analysts at Mizuho said Qualcomm’s “compelling AI offering for handsets could drive a global handset refresh cycle with higher ASP (average selling price) tailwinds.”
The investment bank adjusted its QCOM estimates and slightly raised its price target from $240 to $245.
Going forward, Mizuho analysts believe that the main focus will be on AI on iPhone 16 “and competition from Chinese Android handsets, which are the long-awaited driver of the refresh cycle.”
