- Qualcomm, Inc. (NASDAQ: QCOM) reported second-quarter FY22 revenue growth of 41% year-over-year to $11.16 billion, beating the consensus of $10.6 billion.
- Adjusted EPS improved to $3.21 from $1.90 in 2Q22, above the consensus of $2.91.
- QCT segment revenues increased by 52% Y/Y to $9.55 billion, the design win pipeline increased to more than $16 billion, and QTL revenue declined 2% Y/Y to $1.58 billion.
- Handsets revenue is on track to grow >50% Y/Y in FY22. Increased premium-tier processor volume for Samsung’s Galaxy S22 smartphones to ~75%, up from ~40% in the Galaxy S21.
- QCOM returned $1.7 billion to stockholders during the quarter, including $951 million through repurchases of 6 million shares.
- The operating income improved by 78.1% YY to $3.86 billion, and the margin expanded 725 bps to 34.6%.
- Adjusted EBIT margin improved to 38% from 32% in 2Q22.
- QCOM generated cash from operating activities year-to-date of $4.76 billion, compared to $6.09 billion a year ago.
- “As we expand outside handsets, we’re becoming more of a processor company than a connectivity company. Whether it’s cars or IoT devices, there’ ’s a lot of processing required. and we have the ability to bring connectivity and processing together and enable everything to talk to the car.” Qualcomm CFO Akash Palkhiwala told Benzinga.
- “The phone is demanding a lot more content, especially on the processing side, and we are in a great position to offer that to our customers. so you’re seeing the higher bandwidth that we bring to the table show up in those numbers,” he added.
- On the supply chain issues, Akash said, “we have identified challenges early, and as a result, was able to create second sources for parts and invest in additional capacity with current supply partners. As we move forward, we expect a better matching of demand and supply later in the year, so we’re pretty confident where we’re at.”
- FY22 Outlook: Qualcomm expects Revenues of $10.5 billion - $11.3 billion vs. consensus of $9.98 billion, GAAP EPS of $2.35- $2.55 and Non-GAAP EPS of $2.75 - $2.95, vs. consensus of $2.59.
- Price Action: QCOM shares are trading higher by 5.11% at $142 during the post-market session on Wednesday.
