TMTPOST -- Qualcomm Incorporated accelerated sales and profit for its just-completed fiscal quarter, maintaining the double-digit growth amid the sales rebound in China, the world's largest smartphone market.

Credit:Qualcomm

Qualcomm booked revenue of RMB10.24 billion for the fourth quarter of the fiscal 2024 year ended September 29,  represented a 19% year-over-year (YoY) rise on non-GAAP basis. Analysts expected revenue to be $9.91 billion after a 11% YoY increase three months ago. On non-GAAP basis, adjusted earnings per share (EPS) jumped 33% YoY to $2.69, beating Wall Street estimates of $2.57. And earnings before taxes (EBT) stood at $3.49 billion with a 33% YoY increase, up from a 25% increase for the previous quarter.

Both of Qualcomm's two segments exceeded estimates. Revenue from QCT semiconductor business, which includes handsets, automotive and internet of things (IoT) business, gained 18% YoY to $8.68 billion. The QTL licensing business brought $1.52 billion, up 21% YoY. The handsets sales rose 12% YoY to $6.1 billlion, ahead of analysts' forecast of $6.0 billion. The automotive revenue surged 68% YoY to $899 million, much better than estimated $816 million. IoT revenue grew 22% YoY to $1.68 billion, versus analyst forecast of $1.55 billion.

For the fiscal year 2024, Qualcomm generated $33.19 billion, an increase of 9% from a year earlier. The growth was primarily buoyed by mobile sales in China. The world's leading supplier of smartphone chips said sales of Android phones in the country climbed 40% during the fiscal year ended September 29. "In handsets, we delivered greater than 20% year-over-year growth in Android revenues," said Qualcomm Chief Financial Officer (CFO) Akash Palkhiwala on a call with analysts late Wednesday.

China's smartphone sales increased 2.3% YoY for the third quarter of 2024, marking four consecutive quarters of growth, Counterpoint Research estimated last week. The growth reinforces forecasts of a low-single-digit increase for the full year to make it the first annual growth in five years, boosting industry confidence, according to the global market research firm.

According to Counterpoint the third quarter saw vivo took the top spot with a 19.2% market share, followed by Huawei with a share of 16.4% and Xiaomi witha 15.6% share. Huawei's strong rebound continued in the quarter, helping the brand post a 30% YoY increase from a low base. As of October 8, more than 70% of  iPhone 16 sales' sales came from the Pro and Pro Max models, highlighting customer preference for more impressive display, gaming and imaging experiences, Counterpoint said. It believed such trend could result in more revenue growth for Apple.

Conterpoint's data justified Qualcomm's performance in the September quarter. The company makes the chip at the heart of most high-end Android devices, and many lower-end phones as well. It also sells modems and related chips to Apple for its iPhones, and last year said its contract for 5G chips ran through 2026.

Qualcomm gave rosy guidance for the current quarter. Revenue for the quarter ended December is expected to be $10.5 billion to $11.3 billion, and adjusted EPS to be $2.85 to $3.05. Analysts projected revenue of $10.54 billion and EPS of $2.81. Qualcomm also announced a new $15 billion buyback authorization approved by the Board of Directors.

The earnings beat and upbeat guidance failed to help Qualcomm shares maintain their rally. Shares gained as much as 5.3% in the morning trading and closed less than 0.1% lower on Thursday.