The U.S. chips firm forecast second-quarter revenue between $10.2 billion and $11 billion, above analysts’ estimates of $9.61 billion, according to IBES data from Refinitiv.
The company has benefited from the exit of Huawei Technologies from the smartphone market, which has led other Chinese phone brands – including Xiaomi, Honor and Oppo – to turn to Qualcomm for their chip needs.
Android is driving the growth, Qualcomm chief financial officer Akash Palkhiwala told Reuters. In the first quarter, handset revenues rose 42% year-over-year to $6 billion, driven by greater than 60% growth in revenues from Snapdragon chipsets for Android devices.
The shifting Chinese market had given Qualcomm tremendous opportunity… and we’re capitalizing on it, said Palkhiwala.
He said during an earnings call that the second half of the fiscal 2022 year is shaping up like the second half of fiscal 2021, with very strong year over-year-growth rates.
Still, Qualcomm shares fell about 3% in after hours trading as the results were overshadowed by Facebook owner Meta’s (FB.O) weaker-than-expected profit and forecast. read more
We think investors are somewhat concerned about possible demand pull-in and/or double ordering by its (Qualcomm’s) customers due to the industry supply constraint, said Kinngai Chan, an analyst at Summit Insights Group.
Revenue in the first quarter was $10.7 billion, compared with analysts’ estimates of $10.42 billion, according to Refinitiv IBES data. Its chip segment had first-quarter revenue of $8.85 billion, above analyst expectations of $8.69 billion, according to data from FactSet.