Qualcomm’s revenue jumped during its fiscal third quarter compared to the same period last year, and the company during its earnings call announced a long-term partnership with Samsung to continue providing Snapdragon processors for Galaxy devices. Still, the company issued lower-than-anticipated guidance for its next quarter that left analysts wanting.
Qualcomm Chairman and CEO Cristiano Amon said the firm posted $10.93 billion in revenue for its fiscal third quarter, up about 37% from the same quarter last year and ahead of consensus analyst expectations for $10.88 billion.
The Samsung agreement, is not only a supply agreement, but also an extension of Samsung license to use Qualcomm technology, was described by Amon as “a milestone event.”
He also noted that aside from continued strength in mobile, Qualcomm continues to broaden its horizons by working with new partners and customers in IoT and automotive segments’
“We are transforming Qualcomm from a communications company for the mobile industry into a connected processor company for the intelligent edge… with record revenues in IoT and automotive demonstrating the success of our diversification strategy.”
The bad news: Qualcomm now expects fourth quarter revenue to land between $11 billion and $11.8 billion, while analysts were expecting a bit more–$11.87 billion, according to published reports.
Amon acknowledged that the company’s recent success has been in the face of strong macro-economic headwinds. “We expect the elevated uncertainty in the global economy and the impact of COVID measures in China will cause customers to act with caution in managing their purchases in the second half of calendar 2022.