Qualcomm stock jumps as results, guidance top expectations on strong chip demand

Qualcomm (NASDAQ:QCOM) Incorporated (NASDAQ: QCOM) shares surged more than 5% as the chip company reported third-quarter earnings and revenue that topped analyst estimates, alongside an optimistic guidance for the fourth quarter.

The company’s earnings per share (EPS) for the third quarter came in at $2.33, exceeding the 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 positive market response was driven by both the earnings beat and the guidance for the fourth quarter of fiscal 2024, which was above analyst expectations.

Qualcomm anticipates an EPS range of $2.45 to $2.65 for the upcoming quarter, with the midpoint of $2.55 surpassing the consensus estimate of $2.45.

The company’s revenue forecast of $9.5 to $10.3 billion also beats the consensus of $9.71 billion, indicating potential continued growth.

President and CEO Cristiano Amon highlighted the successful execution of Qualcomm’s growth strategy and the high-end performance of its QCT quarterly revenues and EBT margins.

Amon also expressed enthusiasm for the launch of the Snapdragon X Series solutions for PCs, marking a significant milestone in the company’s transformation towards intelligent computing.