Qualcomm (QCOM 0.30%), a leader in wireless networking technology, announced its fourth-quarter fiscal 2024 results on November 6, 2024.
The company posted GAAP revenues of $10.244 billion, well above the upper range of its guidance of $9.5 billion to $10.3 billion. Non-GAAP diluted earnings per share (EPS) came in at $2.69, exceeding their expectations of $2.45 to $2.65.
This performance reflects strong momentum in key sectors, though the quarter also highlighted ongoing challenges.
Source: Expectations based on management's guidance, as provided in 2024-07-31 earnings report.
| Metric | Q4 Fiscal 2024 | Management's Guidance/Expectations | Q4 Fiscal 2023 | Change |
|---|---|---|---|---|
| Revenue | $10.244 billion | $9.5 - $10.3 billion | $8.631 billion | 19% |
| GAAP EPS (Diluted) | $2.59 | $2.38 - $2.58 | $1.32 | 96% |
| Non-GAAP EPS (Diluted) | $2.69 | $2.45 - $2.65 | $2.02 | 33% |
| QCT Revenue | $8.678 billion | $8.1 - $8.7 billion | $7.374 billion | 18% |
| QTL Revenue | $1.521 billion | $1.35 - $1.55 billion | $1.262 billion | 21% |
Business Overview
Founded in 1985, Qualcomm is pivotal in developing and commercializing wireless technologies, including crucial advancements from CDMA to 5G. It comprises two main segments: Qualcomm CDMA Technologies (QCT) and Qualcomm Technology Licensing (QTL). QCT focuses on semiconductor products and system software, while QTL centers on licensing of its intellectual property portfolio.
Qualcomm's recent activities have concentrated on diversifying its revenue streams. This involves significant investments in the automotive and Internet of Things (IoT) sectors. The diversification aligns with its strategy to capitalize on technological advancements beyond mobile, enhancing the company's long-term growth potential.
Quarterly Achievements
During the quarter, the QCT segment achieved revenues of $8.678 billion, marking an 18% increase from the prior year. This was driven by demand for automotive solutions, part of the Snapdragon Digital Chassis platform. Automotive revenues surged by 68% year-over-year, setting a new consecutive quarterly record. This demonstrates Qualcomm's strategic focus on expanding into the automotive industry.
Meanwhile, the QTL segment reported $1.521 billion in revenues, a solid 21% increase year-on-year. The robust performance underlines the strength of Qualcomm's intellectual property portfolio and ongoing demand for 5G technology, despite external pressures from legal disputes and trade tensions.
However, IoT revenues decreased by 9% compared to last year, indicating an area for improvement. The integration of artificial intelligence and edge computing within its solutions is expected to provide a platform for growth as the market recovers.
Qualcomm continues to face legal and trade challenges, notably its courtroom conflict with Arm Holdings. The outcome could potentially impact future licensing revenue. Despite these issues, Qualcomm's financial stance remains solid with significant growth opportunities in place.
Looking Forward
Looking ahead, Qualcomm sets an optimistic view for the first quarter of fiscal 2025, projecting revenues between $10.5 billion and $11.3 billion. Non-GAAP EPS is expected to range from $2.85 to $3.05. This outlook hinges on continued momentum in its core segments, bolstered by further advances in the automotive and IoT spaces.
Investors should watch Qualcomm's legal proceedings and strategic responses to global trade dynamics. Its leadership in pushing forward 5G advancements, as well as exploring opportunities in 6G, remains essential to its success. With its upcoming Investor Day, Qualcomm may offer additional insights into how it plans to navigate these opportunities and challenges ahead.
