Qualcomm (QCOM) posts strong Q4, fiscal 2021 results

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Qualcomm (QCOM) posts strong Q4, fiscal 2021 results

 Qualcomm (QCOM) posts strong Q4, fiscal 2021 results
Image source: ESB Professional,Shutterstock

Highlights

  • Qualcomm Incorporated reported strong fourth quarter and fiscal 2021 results.

  • Its FY2021 revenue grew 43% YoY and non-GAAP net income rose 104% YoY.

  • The stock rose 7% in one month but fell around 9% YTD.

Technology company Qualcomm Incorporated (NASDAQ: QCOM) declared its fourth-quarter results after the closing bell on Wednesday.

The stock was up 2.42% to US$138.50 at the market close. 

Fourth-Quarter Highlights

The company posted revenue of US$9.3 billion, or EPS diluted of US$2.45, in the quarter, an increase of 12% YoY. In Q4 of fiscal 2020, the revenue was US$8.3 billion. Qualcomm QCT segment earned revenue of US$7.7 million, and the QTL segment generated US$1.56 million.

Its GAAP net income was US$2.8 billion, and the non-GAAP net income was US$2.9 in the fourth quarter.   

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Fiscal full-year Snapshot

In fiscal 2021, its GAAP revenue was US$33.57 billion, up 43% YoY, compared to US$23.5 billion in FY 2020. The GAAP EPS was US$7.87, up 74% YoY, and the non-GAAP EPS was US$8.54, up 104% YoY.

The Qualcomm CDMA Technologies (QCT) segment revenue was US$27 billion for FY 2021, and Qualcomm Technology Licensing (QTL) segment revenue was US$6.3 billion for FY 2021.

Its GAAP net income was US$9.04 billion, up 74% YoY, and the non-GAAP income was US$9.81 billion, a 104% growth year-over-year. For FY 2021, the EBITDA was US$11.4 billion, and the adjusted EBITDA was US$13.1 billion.

Qualcomm’s earnings before tax (EBT) increased 80% on a GAAP basis, while the same grew at 105% on a non-GAAP basis for FY2021. The company has been recording more than 100% EBT growth in the QCT segment on a YoY basis for the last five consecutive quarters. 

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QCOM’s free cash flow (non-GAAP) was US$8.65 billion for FY 2021, and the total cash and cash equivalents, and marketable securities were US$12.4 billion at the end of September 26, 2021. The cash and equivalents were US$11.2 billion as of September 27, 2020.

The company ended the fiscal year 2021 with a strong performance. The revenue, GAAP, and non-GAAP EPS increased more than the expectation. 

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(Earning Release, Qualcomm Incorporated Inc.)

Source – Pixabay

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First-quarter FY22 guidance

After strong fiscal results, the company expects the revenue to be in the range of US$10.0 billion to US$10.8 billion in the first quarter of FY2022. 

The GAAP diluted earnings per share to be between US$2.53 and US$2.73 and non-GAAP diluted earnings per share to be in the range of US$2.90 to US$3.10. The QCT segment revenue to be between US$8.4 billion and US$8.9 billion and the EBT margin to be between 32% and 34%. The QTL segment revenue is expected to remain in the range of US$1.6 billion to US$1.8 billion, and its EBT margin is to be between 74% and 78%.

The company anticipates its 3G/4G/5G handsets shipment year-on-year growth rate likely to be from mid to high single digit compared to FY 2021.

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Qualcomm is based in San Diego, California. The technology company develops and licenses wireless technology and has been the driving force behind the 5G expansion. It is the world’s largest wireless chip vendor and supplies processors to premier headset makers.

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The automotive industry, IoT, and computing will immensely benefit from the 5G technology. 

Qualcomm has a current market capitalization of US$156 billion, a P/E ratio of 17.34, and a dividend yield of 2.02%.

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Bottomline

The Nasdaq 100 index rose 25.25% YTD. In contrast, QCOM fell around 9% in the same period. However, the company’s strong fourth quarter and fiscal year performance underscore the growing demand for its products in the market. However, investors must analyze the companies carefully before investing in the stock market. 

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