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Qualcomm Shares Rise on 5G-Driven Earnings Beat, Strong Guidance

Qualcomm beat revenue and earnings estimates, as the company benefited from 5G adoption.

Shares of Qualcomm rose after the company beat earnings and revenue estimates for the December quarter and issued healthy guidance. 

The stock was rising 1.1% to $91.90 a share, after having risen 2.2% in regular trading hours. 

Earnings per share for the December quarter came in at 99 cents on an adjusted basis, beating analysts estimates of 85 cents and falling 18% year-over-year. Revenue was $5.08 billion, beating Wall Street estimates of $4.84 billion and growing 5%. 

The company guided for current quarter revenue of between $4.9 billion and $5.7 billion, with the midpoint of $5.3 billion higher than analyst's estimates of $5.104 billion. The midpoint of QCT revenue guidance was $4.2 billion, better than Wall Street's expected $3.875 billion. The midpoint of QTL revenue guidance of $1.1 billion is $1 million lower than analyst's estimate of $1.12 billion. Management expects EPS of between 50 cents and 65 cents, with the midpoint of 87.5 cents higher than analyst's forecast of 86 cents. 

For the December quarter, QCT revenue, Qualcomm's main chip segment, came in at $3.618 billion, beating estimates of $3.385 billion and falling 3%. QTL revenue, or licensing, came in at $1.404 billion, missing estimates of $1.406 billion and rising 38%.

"Our strong fiscal first quarter financial performance reflects a significant inflection point for Qualcomm as we begin to realize the benefits from the ramp of 5G,” said CEO Steve Mollenkopf.  

The stock was down 3.5% for the past three months heading into the earnings print.