Qualcomm Inc. (QCOM) shares hit a new 52-week high of $148.80 on Thursday morning after the San Diego, California-based chipmaker announced strong financial results for the fourth quarter, partly helped by launch of 5G products.
The company said that it earned $2.96 billion, or $2.58 per share in the quarter, significantly higher than $506 million, or 42 cents per share in the comparable period last year. On an adjusted basis, profit rose to $1.45 per share, as compared to 78 cents per share last year, and above consensus forecast of $1.17 per share.
Revenue almost doubled in the quarter to reach $8.35 billion, as compared to $4.81 billion in the same period last year. After excluding Qualcomm’s investments, adjusted revenue was $6.5 billion, versus $4.8 billion, a year earlier. Analysts surveyed by FactSet were looking for adjusted revenue of $5.9 billion.
Speaking on the results, CEO Steve Mollenkopf said Qualcomm’s Q4 performance show that its investment in 5G products is paying off and showing profits in its licensing and product segments. The company has finished the year with exceptional quarterly results and is well set for growth in the next year and beyond, he added.
Qualcomm is expected to benefit from Apple’s latest 5G enabled iPhones, beside efforts from other smartphone makers for launching their 5G devices.
Looking forward, the company expects adjusted profit in a range of $1.95 per share to $2.15 per share for the first quarter, and adjusted revenue between $7.8 billion and $8.6 billion. The forecast is in line with the consensus forecast of $1.69 for adjusted earnings and $7.14 billion for revenue.
QCOM shares are currently trading around $145.42 after gaining more than 16 points during the early trading Thursday. The stock has jumped more than 65 percent so far this year, making it one of the most valuable and watched stock among investors.