QUALCOMM, Inc (NASDAQ: QCOM) stock rose over 5.8% in the pre-market session of April 29th, 2021 (as of 09:20:36 UTC-4 · USD; Source: Google finance) as the company posted better than expected results for the second quarter of FY 21 driven by strength across QTL and QCT. In QTL, the company has reported revenues of $1.6 billion and EBT margins of 74%, both above the high end of the guidance range. The outperformance was mainly driven by stronger handset shipments, especially in China. RF front-end revenues grew 39% year-over-year to approximately $900 million on the strength of the product portfolio across 4G, 5G sub-6, and 5G millimeter wave. 5G millimeter wave products accounted for less than 20% of the second quarter RF front-end revenues. The company expects millimeter wave deployments in other regions such as China to be a tailwind for long-term revenue growth. Automotive revenues of $240 million which grew 40%, and IoT revenues of $1.1 billion grew 71% on a year-over-year basis as the company continued to see strong demand for the differentiated product portfolio. During the second quarter, the company completed the acquisition of NUVIA for a purchase price of $1.4 billion before working capital and other adjustments. This acquisition provides the company with a strong CPU team with industry-leading expertise in high-performance processors and SoCs.
QCOM in the second quarter of FY 21 has reported the net profit of $1.76 billion, beating the analysts’ estimates for the net profit of $1.63 billion. The company had reported the adjusted revenue growth of 52 percent to $8 billion in the second quarter of FY 21, beating the analysts’ estimates for revenue of $7.62 billion, according to analysts surveyed by FactSet.
Additionally, the company has returned approximately $2.3 billion to stockholders, consisting of $734 million in dividends and $1.5 billion in stock repurchases
In the third quarter, Qualcomm projects $7.1 billion to $7.9 billion in sales, compared with analysts’ consensus estimate of $7.12 billion, according to FactSet. The company expects third quarter, the company expects non-GAAP EPS to be in the range of $1.55 to $1.75. In QTL, the company expects revenues to be in the range of $1.35 billion to $1.55 billion, up 39% year-over-year at the midpoint, with EBT margins expected to be in the range of 68% to 72%. In QCT, the company expects revenues to be in the range of $5.8 billion to $6.3 billion and EBT margins are expected to be in the range of 24% to 26%.