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Qualcomm's fourth-quarter net profit surged 485% year-on-year.

Published :11/5/2020 2:41:48 AM

Click Count:2103

Qualcomm today released its fiscal year 2020 fourth quarter and full-year financial reports. According to the report, Qualcomm’s fourth-quarter net profit was US$2.96 billion, compared with US$506 million in the same period last year, a year-on-year increase of 485%; revenue was US$8.346 billion, an increase from US$4.814 billion in the same period last year. 73%. Not in accordance with US GAAP, Qualcomm's adjusted net profit for the fourth fiscal quarter was US$1.669 billion, an increase of 76% from US$947 million in the same period last year.

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Qualcomm’s fourth-quarter results exceeded Wall Street analysts’ expectations, and its outlook for adjusted earnings per share for the first fiscal quarter of 2020 also exceeded expectations, driving its after-market share price to rise by nearly 10%.


Results for the fourth quarter:


In the fiscal quarter ending September 27, Qualcomm’s net profit was US$2.96 billion, compared with US$506 million in the same period last year, a year-on-year increase of 485%; diluted earnings per share was US$2.58, which is comparable Compared with the same period last year, the diluted earnings per share was $0.42. Excluding special one-off items (not in accordance with US GAAP), Qualcomm’s fourth-quarter net profit was US$1.669 billion, an increase of 76% from US$947 million in the same period last year; earnings per share were US$1.45, compared with the same period last year An increase of 86% of 0.78 US dollars, this performance exceeded analyst expectations. According to data provided by the Yahoo Finance Channel, 23 analysts had previously expected Qualcomm's earnings per share in the fourth quarter to reach 1.17 US dollars.


Qualcomm's fourth-quarter revenue was 8.346 billion US dollars, an increase of 73% from 4.814 billion US dollars in the same period last year. Excluding special one-time items (not in accordance with US GAAP), Qualcomm's fourth-quarter revenue was US$6.502 billion, an increase of 35% from US$4.8 billion in the same period last year. This performance also exceeded analyst expectations. According to data provided by Yahoo Finance Channel, 21 analysts had previously expected Qualcomm's fourth-quarter revenue to reach 5.94 billion U.S. dollars.


Qualcomm's fourth-quarter operating profit was US$3.452 billion, compared with US$701 million in operating profit in the same period last year. Excluding special one-time items (not in accordance with US GAAP), Qualcomm's adjusted operating profit for the fourth fiscal quarter was US$2.026 billion, compared with US$1.137 billion in operating profit for the same period last year.


Qualcomm’s fourth-quarter revenue from equipment and services was US$4.921 billion, compared with US$3.573 billion in the same period last year; revenue from authorization was US$3.425 billion, compared with US$1.241 billion in the same period last year. Qualcomm's total operating costs and expenses in the fourth fiscal quarter were US$4.894 billion, compared with US$4.113 billion in the same period last year. Among them, the cost of revenue was US$2.766 billion, compared with US$2.118 billion in the same period last year; R&D expenditure was US$1.583 billion, compared with US$1.441 billion in the same period last year; Sales, general affairs and administrative expenses were US$551 million. This compares to US$548 million in the same period last year; other income is US$6 million, compared to US$6 million in other expenditures in the same period last year.


Qualcomm CDMA Technology Group’s fourth-quarter revenue was US$4.967 billion, an increase of 38% compared to US$3.611 billion in the same period last year; pre-tax profit was US$1.015 billion, an increase of 103% from US$499 million in the same period last year. Qualcomm Technology Licensing Group’s fourth-quarter revenue was US$1.507 billion, an increase of 30% compared to US$1.158 billion in the same period last year; profit before tax was US$1.107 billion, an increase of 40% compared to US$792 million in the same period last year. Qualcomm CDMA Technology Group’s MSM chip shipments in the fourth quarter were 162 million, an increase of 7% compared to 152 million in the same period last year.


Qualcomm's operating cash flow in the fourth fiscal quarter was US$1.741 billion, compared to US$1.227 billion in operating cash flow in the same period last year. As of the end of the fourth fiscal quarter of fiscal year 2020, Qualcomm's total cash and cash equivalents amounted to US$6.707 billion, compared to US$11,839 million as of the end of the fiscal fourth quarter of fiscal year 2019.


In the fourth quarter of the fiscal quarter, Qualcomm returned $734 million in cash to shareholders in the form of cash dividends, or approximately $0.65 per share.


2020 fiscal year results:


Throughout the 2020 fiscal year, Qualcomm's revenue was 23.531 billion U.S. dollars, a decrease of 3% from the 2019 fiscal year's 24.273 billion U.S. dollars; net profit was 5.198 billion U.S. dollars, an increase of 19% compared to the 2019 fiscal year's net profit of 4.386 billion U.S. dollars; Diluted earnings per share was US$4.52, an increase of 26% compared to the 2019 fiscal year’s diluted earnings per share of US$3.59; pre-tax profit was US$5.719 billion, a 24% decrease from US$7.481 billion in fiscal 2019; operating profit was US$6.255 billion, compared with operating profit of US$7.667 billion in fiscal year 2019. Qualcomm's operating cash flow in fiscal year 2020 was US$5.814 billion, compared with operating cash flow of US$7.286 billion in fiscal year 2019.


Excluding special one-off items (not in accordance with US GAAP), Qualcomm's revenue for fiscal year 2020 was 21.654 billion US dollars, an increase of 12% from 19.398 billion US dollars in fiscal year 2019; net profit was 4.816 billion US dollars, compared with 2019 The fiscal year’s US$4.323 billion increased by 11%; earnings per share were US$4.19, an increase of 18 from US$3.54 in fiscal year 2019; pre-tax profit was US$5.484 billion, an increase of 28% from US$4.285 billion in the same period last year; operating profit was 54.84 This compares to an operating profit of 4.700 billion US dollars in fiscal year 2019.


Qualcomm's revenue from equipment and services in fiscal 2020 was 16.298 billion U.S. dollars, compared with 14.611 billion U.S. dollars in fiscal year 2019; revenue from authorization was 7.233 billion U.S. dollars, compared to 9.662 billion U.S. dollars in fiscal year 2019. Qualcomm CDMA Technology Group's fiscal year 2020 revenue was 16.493 billion U.S. dollars, an increase of 13% compared with the 2019 fiscal year of 14.639 billion U.S. dollars. Qualcomm Technology Licensing Group's revenue in fiscal year 2020 was US$5.028 billion, an increase of 10% compared with the US$4.591 billion in fiscal year 2019. Qualcomm CDMA Technology Group's MSM chip shipments in fiscal year 2020 were 575 million, a 12% decrease from the 650 million in the same period last year.


Qualcomm returned US$5.332 billion in cash to shareholders in fiscal 2020, of which US$2.882 billion was returned in the form of cash dividends, or approximately US$2.54 per share; and US$2.450 billion was returned to shareholders in the form of share repurchases. In cash, the total number of common shares repurchased was 31 million shares.


Performance Outlook:


Qualcomm expects revenue in the first quarter of fiscal 2020 to be between US$7.8 billion and US$8.6 billion, with an average of US$8.2 billion, exceeding analysts’ previous expectations. According to data provided by the Yahoo Finance Channel, 21 analysts on average expect Qualcomm's first-quarter revenue to reach 7.13 billion US dollars. Qualcomm expects earnings per share in the first fiscal quarter to reach US$1.67 to US$1.87; excluding one-time items (not in accordance with US GAAP), Qualcomm expects earnings per share in the first fiscal quarter to reach US$1.95 to US$2.15. The average value was US$2.05, which exceeded analysts' previous expectations. According to data provided by the Yahoo Finance Channel, 23 analysts on average expect Qualcomm's first-quarter earnings per share to reach $1.68.


Qualcomm also expects CDMA technology group revenue to reach US$6.2 billion to US$6.8 billion in the first quarter of fiscal year 2020, and it expects technology licensing group revenue to reach US$1.6 billion to US$1.8 billion.

In addition, Qualcomm has applied to the US government for a license to sell chips to Huawei, but has not yet received any response.