Qualcomm Inc (NASDAQ:QCOM, ETR:QCI) beat Wall Street expectations for revenue and earnings in its fiscal third quarter, driven by strong growth in its automotive and Internet of Things (IoT) segments, but issued a cautious outlook for the current quarter, sending shares down 4.6% on Thursday morning.
The chipmaker reported revenue of $10.37 billion for the quarter ended June 30, up 10% from a year earlier and above analysts’ average estimate of $10.33 billion, according to LSEG data. Adjusted earnings per share rose 19% to $2.77, also ahead of expectations of $2.72.
“Our strong growth in Automotive and IoT validates our diversification strategy,” said CEO Cristiano Amon. “We’re well positioned as the AI platform of choice at the edge.”
Revenue in Qualcomm’s QCT segment, which includes chips for smartphones and other devices, climbed 11% year-over-year to $8.99 billion. Handset revenue rose 7% to $6.33 billion, while Automotive and IoT revenues jumped 21% and 24%, respectively. Earnings before taxes for QCT rose 22% to $2.67 billion.
The company’s licensing segment, QTL, brought in $1.32 billion in revenue, up 4% year-over-year, with segment EBT up 5% to $942 million.
Despite the upbeat results, Qualcomm's guidance for the fourth quarter suggested more muted growth. The company forecast revenue between $10.3 billion and $11.1 billion, bracketing the $10.61 billion consensus estimate. Non-GAAP EPS is expected to range from $2.75 to $2.95, compared to estimates of $2.84.