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Sep 27, 2020

Qualcomm Q4 2020 Earnings Report

Reported record quarterly EPS that exceeded the high end of guidance range.

Key Takeaways

Qualcomm announced strong Q4 and Fiscal Year 2020 results, demonstrating the benefits of their investments in 5G. The company is well-positioned for growth in 2021 and beyond, driving growth across RF front-end, Automotive, and IoT adjacencies.

Q4 revenues increased by 73% year-over-year to $8.346 billion.

GAAP EPS for Q4 was $2.58, while non-GAAP EPS was $1.45.

The company's investments in 5G are showing benefits in both licensing and product businesses.

Qualcomm is well-positioned for growth in 2021 and beyond.

Total Revenue
$6.5B
Previous year: $4.8B
+35.3%
EPS
$1.45
Previous year: $0.78
+85.9%
Dividends Paid
$734M
Gross Profit
$5.58B
Previous year: $2.7B
+107.0%
Cash and Equivalents
$6.71B
Previous year: $11.8B
-43.3%
Total Assets
$35.6B
Previous year: $33B
+8.0%

Qualcomm

Qualcomm

Qualcomm Revenue by Segment

Forward Guidance

Qualcomm provided revenue guidance for Q1 FY21 to be between $7.8B - $8.6B. GAAP diluted EPS is expected to be $1.67 - $1.87 and Non-GAAP diluted EPS is expected to be $1.95 - $2.15.

Positive Outlook

  • QCT revenues are expected to be $6.2B - $6.8B
  • QTL revenues are expected to be $1.6B - $1.8B
  • Company is well positioned for growth.
  • Investments in 5G are coming to fruition.
  • Driving growth and scale across RF front-end, Automotive and IoT adjacencies.

Challenges Ahead

  • Outlook does not include provisions for future asset impairments or for pending legal matters, other than future legal amounts that are probable and estimable.
  • Certain income and expense items, such as certain investments, derivative and foreign currency transaction gains or losses, cannot be accurately forecast.
  • Actual results may differ materially from the outlook.
  • Guidance for diluted EPS attributable to other items for the first quarter of fiscal 2021 is primarily attributable to acquisition-related items.
  • COVID-19 pandemic continues to impact business and consumer confidence.