Smartphone Chipmaker Qualcomm Blows Away Analyst Estimates in Q3
November 8, 2012 10:07 AM
comment(s) - last by
Massive profit bests even the highest analyst expectation
It's relatively rare to see every single analyst miss when forecasting a company's earnings. When that happens, you know the news is either very good -- or very bad.
I. A Pleasant Sort of Surprise
Fortunately for Qualcomm, Inc. (
), it falls under the former category. On Tuesday it announced its fiscal Q4 2012
[PDF]. The San Diego, Calif.-based smartphone chipmaker revealed that in the quarter ending in September it made $4.87B USD in revenue and $1.27B USD in net income (profit).
Analysts had predicted a solid, but sleepier $4.66B USD revenue haul, with the actual results approaching the high end of
collected by the UK financial analysis agency
The Financial Times
But the big surprise was the profit. Analysts had expected only $1.16B USD in profit. Even the most optimistic analyst only predicted $1.24B USD in profit ($0.87 USD/share). In other words Qualcomm blew away all the predictions regarding profit, and smoked the average expectation by 9 percent.
[Image Source: Jason Mick/DailyTech]
Dr. Paul E. Jacobs, chairman and CEO of Qualcomm, cheered the strong performance, commenting, "I am very pleased with our performance this year. We delivered record revenues, earnings and MSM chipset shipments driven by increasing global consumption of wireless data across a diverse range of devices, particularly smartphones."
The chipmaking chief predicts "double-digit revenue growth" in fiscal 2013, driven on the back of the company's core chipset and system-on-a-chip businesses.
II. Future Looks Bright
In the fiscal Q4, Qualcomm shipped 141 million Snapdragon chipsets globally, an 11 percent rise from 2011. Additionally, an estimated 210 to 214 million devices sold carried a Qualcomm 3G/4G chip.
Qualcomm makes its system-on-a-chip central processing units based on licensed instruction sets and intellectual property cores from UK reduced instruction set computer (RISC) architecture giant ARM Holdings plc (
). Currently, Qualcomm's big push involves
the 28 nm Snapdragon 4
, manufactured by Taiwan Semiconductor Manufacturing Comp., Ltd. (
Electronics Comp., Ltd. (
). While many Snapdragon 4 chips are destined for traditional Android smartphones/tablets, the Qualcomm chips
are also popping up
in Windows 8 tablets, a pivotal new business target.
The Windows RT Samsung Ativ Tab carries a Snapdragon 4 SoC.
Qualcomm, which offers a quarterly dividend to shareholders, has also been repurchasing stock to further share its profits with investors. The company is currently sitting on $26.8B USD in cash, meaning that it has a lot of money for acquisitions, should it choose to make a move.
Compared to some other ARM-architecture chipmakers
like NVIDIA Corp. (
), Qualcomm's Q1 2013 outlook is relatively optimistic. Despite a slowing semiconductor and device market, the Californian company hopes to sustain double-digit growth in many metrics over the holiday. The only expected dip is in diluted shares, as Qualcomm moves to shutter its discontinued
Flo TV business
FT [analyst estimates]
This article is over a month old, voting and posting comments is disabled
It must be because english is not my native language…
11/8/2012 11:58:40 AM
…but I keep thinking "blowing away analyst expectations" looks more like over 20% or more in profit/revenue, not less than 10%. I mean, if you want to look at it from a different angle; on $4,870 Million revenue they made $30 million more profit than the "most optimistic" analyst predicted.
While certainly good results, that’s not "blowing away" expectations. But then, this is no AnandTech, either…
RE: It must be because english is not my native language…
11/9/2012 12:08:02 PM
This is actually consistent with Wall Street terminology. It makes no sense but it's how they see going $30mil over expectations. So basically 4.5% revenue above expectations and 9.4% profit above expectations is earth shattering on Wall Street.
RE: It must be because english is not my native language…
11/9/2012 11:49:20 PM
Anand should buy DailyTech. That's an M&A I'd be happy with!
"I mean, if you wanna break down someone's door, why don't you start with AT&T, for God sakes? They make your amazing phone unusable as a phone!" -- Jon Stewart on Apple and the iPhone
TSMC Predicts Slump, Stakes 2013 Rebound Hopes on 28 nm Mobile Chips
October 25, 2012, 1:33 PM
Samsung to Crown Texas Fab With $4B USD Revamped SoC Line
August 21, 2012, 4:16 PM
CES 2012: Qualcomm Says 70+ Snapdragon 4 Designs Incoming
January 11, 2012, 7:50 PM
Qualcomm to Lead ARM in War Against Intel With New Laptop Chips
January 3, 2012, 10:30 AM
Qualcomm Sells AT&T Extra Spectrum to Push Out 4G LTE Data Coverage
December 20, 2010, 12:20 PM
BlackBerry’s Latest "Plug" for its Passport Smartphone: Displaying Sharp X-rays for Doctors
August 21, 2014, 4:49 PM
Sprint Introduces $60 Unlimited Plan, Touts $20/Month Costs Savings Versus T-Mobile
August 21, 2014, 2:05 PM
Opera Becomes Official Browser of Microsoft-Nokia's Non-Windows Phones
August 21, 2014, 1:01 PM
Microsoft Tests Free 24-Hour Xbox One Game Trials
August 21, 2014, 11:41 AM
New Photos Show “Assembled” iPhone 6, Protruding Camera Ring
August 20, 2014, 2:32 PM
ZTE Nubia 5S mini LTE 4.7" Smartphone Headed to U.S. for $280 Unlocked
August 20, 2014, 10:37 AM
Most Popular Articles
Lumia 830 Gets Major Upgrades Including New 20.1 Megapixel Toshiba Sensor
August 15, 2014, 6:00 PM
Windows Phone, BlackBerry Smartphone Market Share Falls to 2.5%, 0.5% Respectively
August 15, 2014, 9:44 AM
GM Concedes That the Cadillac ELR Doesn’t Really Compete with the Tesla Model S
August 15, 2014, 5:42 PM
Report: Windows 9 “Threshold” Tech Preview Coming Next Month
August 15, 2014, 11:29 AM
Apple Scores Patents, Preps New Reversible USB Plug for iPhone 6 Connector
August 18, 2014, 1:32 PM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information