The Qualcomm logo will be unveiled at the Second China International Import Expo (CIIE) on November 6, 2019 in Shanghai, China. Reuters / Ally Song
Ali song | Reuters
Shares of Qualcomm rose their double-digit gains on Thursday morning after the company posted financials in the fourth quarter, stronger than Wall Street expectations.
The company’s stock rose more than 13%.
Analysts at Bank of America wrote in a letter: “We believe that the stars are aligning for Qualcomm, with the launch of the multi-year global 5G cycle ramp, semiconductor materials and prices, and the full benefit of all major OEM royalties led by technology Analysts at Bank of America said in an article. Note Thursday. OEMs are manufacturers of original devices. Analysts raised their price target from $ 165 to ડ 180.
Qualcomm said it would benefit from the rise of 5G networks and handsets. One of its 5G modem chips is included in Apple’s iPhone 12, the first iPhone to include 5G capabilities. Qualcomm added on Wednesday that it expects to ship 200 million 5G smartphones in 2020 and about 500 million 5G smartphones in 2021.
The company also provided guidance for the first quarter of its fiscal year ending in December. It said it expects revenue of 7. 7.8 billion and 8. 8.6 billion, and has set EPS between 9 1.95 and 15 2.15.
“With global smartphone volumes continuing to improve, Qualcomm is in a good position to benefit from a cycle of long-term 5G investments and we expect revenue for F2022 and beyond,” Cancord Genuity analysts wrote in a note on Wednesday. The firm has raised its price target from $ 150 to 5 175.
Qualcomm reported earnings of 45 1.45 per share on adjusted revenue of 5 6.5 billion, compared to Wall Street’s estimated revenue of $ 5.93 billion per share, compared to an estimated earnings per share of 1. 1.17 billion.
– Michael Bloom of CNBC contributed to this report.
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