[Quick Take] Qualcomm beats earnings, but guidance disappoints

港記
05-01

$高通(QCOM)$ released its FY2025 Q2 report: revenue and EPS topped estimates, driven by strong performance in core chip segments. However, Q3 revenue guidance of $10.3B (midpoint) missed Wall Street’s $10.35B expectation, triggering market concerns.

Highlights:

  • Q3 EPS forecast: $2.70 (midpoint) vs. est. $2.67

  • QCT chip revenue: $9.47B (+18% YoY)

    • 📱 Mobile chips: $6.93B (+12%), boosted by premium Android demand (Samsung, Apple)

    • 🚗 Auto: $959M (+59%)

    • 🛠️ IoT: $1.58B (+27%)

  • QTL licensing: $1.32B (flat YoY), stable 70% EBT margin

Management Talk: CEO Cristiano Amon reaffirmed Qualcomm’s push beyond smartphones, aiming for $22B in non-handset revenue by FY2029. He highlighted growth in AI and edge computing, plus the rollout of the X85 5G platform later this year.
CFO Akash Palkhiwala added that the global supply chain remains resilient, with no material impact from tariffs. Shareholder returns this quarter totaled $2.7B (buybacks + dividends).

Outlook:

  • Q3 revenue: $9B–$10.7B

  • QCT guidance: $8.7B–$9.3B

    • Mobile up ~10% YoY

    • IoT & Auto up 15–20% YoY

Strategy & Risks:

  • Growth drivers: AI/edge computing, premium handsets, industrial IoT, auto platforms

  • Risks: macro uncertainty (tariffs), smartphone growth sustainability, intensifying IoT/auto competition

Analyst Q&A:

  • Cowen: Tariff impact? → CEO: supply chain diversification is key

  • JPM: IoT growth drivers? → CFO: industrial IoT leads; Edge Impulse & FocusAI acquisitions are strategic

  • UBS: China market? → Management: demand remains solid, no major seasonal dip

Bottom Line:
Q2 results show Qualcomm’s diversification strategy gaining traction, with strong double-digit growth in auto and IoT. While Q3 guidance is cautious, management remains confident in its long-term goal of hitting $22B in non-handset revenue by FY2029.

Key Resistance Level: Will S&P 500 Break Out or Turn Lower?
The S&P 500 has rebounded to 5,650 points—its level before April’s sharp sell-off and a key technical resistance zone. Following strong earnings reports from the Magnificent 7, this week’s market focus shifts to the FOMC and its signals on interest rate cuts. The market is still pricing in three rate cuts this year. ------------- Can the S&P 500 successfully break above the 5,600 level, or will it turn lower? And more importantly, can it overcome the seasonal “Sell in May” pattern?
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Comments

  • Venus Reade
    05-02
    Venus Reade
    Even in the PH it’s not moving much upwards . It looks the WS has the algorithm hard coded to not let this stock go past 140
  • Valerie Archibald
    05-02
    Valerie Archibald
    Buybacks start back up 2 days after earnings. Buybacks tomorrow!
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