Qualcomm Inc (NASDAQ:QCOM) managed to beat expectations with its earnings in its first quarter, however, revenues came in narrowly below predictions amid industry supply constraints.
After Wednesday’s close, the semiconductor and software specialist reported net income of US$2.46bn, or US$2.12 per shares, up from US$925mln, or US$0.80, a year ago, while revenues jumped 62% to US$8.24bn.
The US$2.12 figure was ahead of analyst predictions of US$2.10 per share for the period, however, the revenue figure fell just short of forecasts of US$8.27bn.
Qualcomm attributed the earnings jump to strong demand for 5G handsets and growth in its radio frequency front-end, automotive and internet of things adjacents which drove record earnings for its computer chip business.
“We remain well positioned as the 5G ramp continues and we extend our core technology roadmap to adjacent industries”, Qualcomm chief executive Steve Mollenkopf said in a statement.
Looking ahead, the company forecast earnings per share for the second quarter of its 2021 financial year of between US$1.55-1.75 and revenues of between US$7.2-8bn. The projections are ahead of analyst predictions of US$1.58 per share and revenues of US$7.1bn.
Despite the earnings beat, the revenue miss dented the company’s shares, which were down 5.5% at US$153.42 in pre-market trading in New York on Thursday.