Qualcomm Inc.  (QCOM) - Get Report  shares were indicated sharply higher in extended-hours trading Wednesday after the chipmaker posted stronger-than-expected fourth quarter earnings and current quarter profit guidance. 

Qualcomm said non-GAAP earnings for the three months ending in September, its fiscal fourth quarter, were pegged at 78 cents per share came in at an adjusted cents 78, down 12.4% from the same period last year but firmly ahead of Wall Street estimates of 71 cents per share. The group's adjusted operating margin, Qualcomm said, was 22.9%, beating expectations of 22.5%. Revenue for the quarter came in at $4.8 billion, against beating analysts expectations of $4.756 billion even as the total fell 17% from last year.

Qualcomm said current quarter revenue is likely to rise to between $4.4 billion and $5.2 billion, just ahead of the consensus forecast of $4.82 billion. Qualcomm said the guidance excludes QTL royalty revenue from China-backed handset maker Huawei Technologies. The group also expects non-GAAP adjusted EPS for the quarter of between 80 cents and 90 cents per share, far better than analysts' expectation of 81 cents per share.

"We delivered a strong quarter, with Non-GAAP earnings per share above the high end of our guidance range, primarily on solid performance in our QTL segment," said CEO Steve Mollenkopf. "We exit the fiscal year having successfully executed on our strategic priorities: helping to drive the commercialization of 5G globally, completing a number of important anchor license agreements and executing well across our product roadmap. Our technology and inventions leave us extremely well positioned as 5G accelerates in 2020."

Qualcomm shares were indicated 4.86% higher in extended hours trading following the earnings release at $88.74 each. That would take the stock's year-to-date gain to around 55.5% if the gains held into the opening bell on Thursday.

The company's QCT sales, the largest segment, were $3.61 billion, beating estimates of $3.57 billion. QTL, a far higher margin segment, revenue was $1.15 billion, topping estimates of $1.1 billion. 

The company said QTL revenue included royalty revenue from Apple (AAPL) - Get Report , previously a question area for the company and its investors. Also, $100 million of the quarterly QTL revenue came from an "interim agreement" with Huawei. "We have not reached a final agreement with Huawei," the company said.