And the San Diego company's earnings forecast was stronger than expected as well, buoyed by a settlement with Huawei.
“As 5G continues to roll out, we are realizing the benefits of the investments we have made in building the most extensive licensing program in mobile," Chief Executive Steve Mollenkopf said in a statement.
“We delivered earnings above the high end of our range, continued to execute in our product and licensing businesses and entered into a new long-term patent license agreement with Huawei, all of which position us well for the balance of 2020 and beyond.”
In the fiscal 2020 third quarter ended June 28, Qualcomm registered net income of $845 million, or 74 cents a share, down from $2.15 billion, or $1.75, in the year-earlier quarter.
The FactSet analyst consensus for the latest quarter was 44 cents a share.
Adjusted earnings per share totaled 86 cents in the latest quarter, up from 80 cents a year earlier. Analysts projected the latest figure would total 71 cents.
And Qualcomm posted revenue of $4.89 billion for the latest quarter, down 51% from $9.64 billion last year. Analysts predicted $4.81 billion for the latest quarter.
As for the outlook, Qualcomm estimates adjusted revenue of $5.5 billion to $6.3 billion for the current quarter, compared with analysts’ forecast of $5.76 billion, according to FactSet.
This month Qualcomm reached “a settlement agreement, as well as a new long-term, global patent license agreement with Huawei, including a cross license granting back rights to certain of Huawei’s patents, covering sales beginning Jan. 1, 2020,” Qualcomm said in a statement.
Qualcomm’s current-quarter guidance includes $1.8 billion related to amounts due from Huawei under the settlement agreement and the new global patent license agreement. “This amount will be excluded from our non-GAAP results,” Qualcomm said.
Qualcomm stock recently stood at $105.84 in after-hours trading, up 14%. It rose 1.7% in the regular session.