November 6, 2024 - $Qualcomm (QCOM.US)$ shares surged 7.10% to $185.27 in post-market trading on Wednesday. It announced results for its fiscal fourth quarter and year ended September 29, 2024. “We are pleased to conclude the fiscal year with strong results in the fourth quarter, delivering greater than 30% year-over-year growth in EPS,” said Cristiano Amon, President and CEO of Qualcomm Incorporated. “We are excited about our recent product announcements at Snapdragon Summit and Embedded World, as they continue to extend our technology leadership and position us well across Handsets, PC, Automotive and Industrial IoT. ”

Highlight

• Fiscal 2024 GAAP Revenues: $39.0 billion

• Fiscal 2024 GAAP EPS: $8.97, Non-GAAP EPS: $10.22

• Greater Than 20% Growth in Fiscal Year EPS

• Record Fiscal Year Operating Cash Flow

• QCT Automotive: 5th Consecutive Record Quarterly Revenues

Buyback

Building on the stock buyback plan announced in October 2021, the board has approved a new $15 billion stock buyback authorization with no expiration date. As of the end of fiscal year 2024, there remains $1 billion of unused authorization from the previous buyback plan.

Strong Growth Across Qualcomm's Divisions

Qualcomm's third-quarter financials exceeded expectations with a 19% increase in overall revenue and a 33% rise in EPS, surpassing analyst predictions of 14.4% and 27.2% growth rates, respectively. The mobile chip sector, a primary revenue driver, posted $6.1 billion, up 12% from last year and ahead of the $6 billion forecast. For fiscal 2024, total revenue hit $33.19 billion, up 9%, fueled by a 40% surge in Android phone sales in China. The automotive chip sector saw a significant 68% increase to $899 million, markedly above the $816 million expected, marking five consecutive quarters of growth. IoT chip revenue also outperformed, reaching $1.68 billion, a 22% increase.

Revenue and EPS Guidance Surpasses Expectations

Qualcomm's outlook for the fourth quarter suggests continued robust performance, projecting revenue growth between 5.8% and 13.9%, well above analyst forecasts. EPS growth is expected to range from 3.6% to 10.9%, significantly higher than the anticipated 2.2% increase. The recent launch of the Snapdragon 8 Elite, described as the most powerful SoC to date, features triple the performance of its predecessors and has been well received in the market, with major releases from Chinese brands and anticipation for new products from Samsung and Asus.