Qualcomm on Wednesday posted record first-quarter revenue and beat Wall Street’s forecast for the current quarter, fueled by strong growth in the Android business and demand from handset makers in China.
The US chips firm estimates revenue in the second quarter to be between $10.2 billion (about Rs 76,353 crore) and $11 billion (about Rs 82,341 crore), higher than analysts’ estimates of $9.61 billion (about Rs 71,936 crore). , as shown by the IBES data. Refinitiv.
The company has benefited from the exit of Huawei from the smartphone market, which has led other Chinese phone brands – including Xiaomi, RespectAnd Opposition – turned towards Qualcomm for their chip needs.
“Android is accelerating growth,” Qualcomm’s chief financial officer Akash Palkiwala told Reuters. In the first quarter, handset revenue grew 42 percent year-on-year to $6 billion (about Rs 44,916 crore), driven by over 60 percent growth in revenue from Snapdragon chipsets for Android devices.
The changes in the Chinese market presented Qualcomm “a tremendous opportunity … and we are taking advantage of that,” Palkiwala said.
He said during an earnings call that the second half of FY2022 is “shaping up” like the second half of FY21, with “very strong year-on-year growth rates”.
Net income rose to $3.69 billion (approximately Rs 27,623 crore), or $3.23 (approximately Rs 240) per share, from $2.51 billion (approximately Rs 18,789 crore) or $2.17 (approximately Rs 162) per share in the first quarter. , one year ago. Palkiwala forecast non-GAAP EPS growth of more than 30 percent in the third quarter.
“We think investors are concerned about potential demand pull-ins and/or double ordering by its (Qualcomm) customers due to industry supply constraints,” said Qingai Chan, an analyst at Summit Insights Group.
While the chip supply crunch that has crippled many industries during the pandemic, chief executive Cristiano Amon told the earnings call that Qualcomm has invested in making sure it is able to deliver to its customers by the end of the second half of 2022. Supply will improve in the half yearly.
According to data from Refinitiv IBES, revenue in the first quarter stood at $10.7 billion (about Rs 80,103 crore), compared to analysts’ estimates of $10.42 billion (about Rs 78,001 crore). Its chip segment had revenue of $8.85 billion (approximately Rs 66,248 crore) in the first quarter, which was above analysts’ expectations of $8.69 billion (approximately Rs 65,051 crore). factset,
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