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Qualcomm Stock Jumps On June-Quarter Beat-And-Raise Report

Wireless-chip maker Qualcomm (QCOM) late Wednesday easily beat Wall Street’s targets for its fiscal third quarter and guided higher for the current period. Qualcomm stock surged in extended trading.




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The San Diego-based company earned an adjusted $1.92 a share on sales of $8.06 billion in the quarter ended June 27. Analysts expected Qualcomm earnings of $1.68 a share on sales of $7.53 billion, according to FactSet. On a year-over-year basis, Qualcomm earnings rocketed 123% while sales jumped 65%.

The company’s chip business accounted for 80% of total sales in the June quarter. Of that, the lion’s share was for handsets. But it also makes chips for radio-frequency front-end, automotive and Internet of Things applications. The remainder of Qualcomm’s business is technology licensing.

“In addition to leading the 5G transition, we are on pace to deliver $10 billion of annual revenues across RF front-end, IoT and automotive as our business continues to diversify,” Chief Executive Cristiano Amon said in a news release.

Qualcomm Stock Pops Late

He added, “Our solutions are fueling the connected intelligent edge that is enabling the cloud economy, and we are seeing unprecedented demand for our technologies as the pace of digital transformation accelerates.”

In after-hours trading on the stock market today, Qualcomm stock climbed 2.2%, near 145.50. During the regular session Wednesday, Qualcomm stock rose 1.1% to 142.44.

Qualcomm stock has been consolidating for the past 27 weeks with a buy point of 168.04, according to IBD MarketSmith charts.

For the current quarter, Qualcomm expects to earn an adjusted $2.25 a share on sales of $8.8 billion. That’s based on the midpoint of its outlook. Wall Street had predicted Qualcomm earnings of $2.03 a share on sales of $8.46 billion. In the year-earlier period, Qualcomm earned $1.45 a share on sales of $6.5 billion.

AMD, Others Moving On Earnings

Other semiconductor stocks moving on earnings news Wednesday included Advanced Micro Devices (AMD), Monolithic Power Systems (MPWR) and Silicon Labs (SLAB).

AMD stock jumped 7.6% to 97.93 on Wednesday after the chip designer delivered a beat-and-raise earnings report late Tuesday. Its shares broke out of a cup-with-handle base at a buy point of 95.54, according to MarketSmith charts.

Monolithic Power Systems stock popped 5.8% to 431 on Wednesday after it delivered better-than-expected second-quarter results. MPWR stock surged out of the 5% buy zone of its recent breakout on the news.

Silicon Labs stock advanced 3.2% to 142.45 after its upbeat second-quarter report early Wednesday.

Qualcomm stock ranks No. 13 out of 30 stocks in IBD’s fabless semiconductor industry group. AMD stock is tied for first place in the group. Monolithic ranks third and Silicon Labs is No. 16.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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