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!
"Well, there may be a reason why they call them 'Mac' trucks! Windows machines will not be trucks." -- Microsoft CEO Steve Ballmer
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
The Samsung Galaxy S7
September 14, 2016, 6:00 AM
Apple Watch 2 – Coming September 7th
September 3, 2016, 6:30 AM
Apple says “See you on the 7th.”
September 1, 2016, 6:30 AM
Apple sued because of iPhone 6 Touch Disease
August 31, 2016, 7:00 AM
Get Ready to wait in line – iPhone 7 due September.
August 18, 2016, 7:15 AM
Robot Cameras Capture Gold at 2016 Olympics in Rio
August 16, 2016, 6:58 AM
Most Popular Articles
5 Cases for iPhone 7 and 7 iPhone Plus
September 18, 2016, 10:08 AM
Automaker Porsche may expand range of Panamera Coupe design.
September 18, 2016, 11:00 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM
No More Turtlenecks - Try Snakables
September 19, 2016, 7:44 AM
ADHD Diagnosis and Treatment in Children: Problem or Paranoia?
September 19, 2016, 5:30 AM
Latest Blog Posts
Who is in Risk of Getting Oral Cancer?
Sep 23, 2016, 6:02 AM
France Bans Plastic Eating Utensils in Restaurants
Sep 18, 2016, 10:49 AM
Progress Against Acute Myeloid Leukemia
Sep 17, 2016, 5:30 AM
Apple Watch Series 2 - Number 1 in the Customer Satisfaction.
Sep 7, 2016, 6:19 PM
First Self-Driving Car debut on the streets of Singapore
Aug 28, 2016, 4:10 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information