Qualcomm Inc. (NASDAQ: QCOM) shares popped by 7.3% on Thursday morning after reporting its fourth quarter financial results on Wednesday.
For the quarter, Qualcomm reported earnings of USD 0.78 per share on revenue of USD 4.8 Billion. Refinitiv analysts anticipated earnings of USD 0.71 per share on revenue of USD 4.7 Billion.
Despite the beat, the Company reported that revenue declined by 17% year-over-year and 50% sequentially. Net income decreased by 76% quarter-over-quarter to USD 0.5 Billion. However, for fiscal 2019, Qualcomm reported that revenue increased by 7% compared to fiscal 2018.
Qualcomm primarily attributed its earnings beat to its Qualcomm Technology Licensing segment, which generated a total of USD 1.15 Billion in revenue. The segment reported revenue growth of 4% year-over-year, but fell by 10% sequentially.
Qualcomm CDMA Technologies reported revenues of USD 3.61 Billion, which declined by 22% year-over-year. The decline in the segment was largely attributable to the revenue drop year-over-year.
The Company noted that fourth quarter and fiscal 2018 revenue included USD 100 Million and USD 600 Million, respectively, from “an interim agreement with Huawei.”
“We delivered a strong quarter, with Non-GAAP earnings per share above the high end of our guidance range, primarily on solid performance in our QTL segment,” said Steve Mollenkopf, Chief Executive Officer of Qualcomm Incorporated. “We exit the fiscal year having successfully executed on our strategic priorities: helping to drive the commercialization of 5G globally, completing a number of important anchor license agreements and executing well across our product roadmap. Our technology and inventions leave us extremely well positioned as 5G accelerates in 2020.”
As for the first quarter, Qualcomm is expecting revenues between USD 4.4 Billion to USD 5.2 Billion versus Refinitiv analysts’ estimates of USD 4.8 Billion.