Investing.com - Qualcomm (NASDAQ:QCOM) on Wednesday report results that topped analysts' forecasts and the semiconductor company said it was set to benefit from the ramp-up of 5G.
Qualcomm announced earnings per share of $0.99 on revenue of $5.08 billion. Analysts polled by Investing.com anticipated EPS of $0.85 on revenue of $4.83 billion.
That compares to EPS of $1.20 on revenue of $4.82 billon in the same period a year before. Qualcomm (NASDAQ:QCOM) had reported EPS of $0.78 on revenue of $4.8 billion in the previous quarter.
Shares rose 2% postmarket.
Chip sales fell 17% to 155 million, and the company is not expecting to turn around performance in the second quarter, guiding chip shipments in range of 125 million to 145 million.
For the second quarter, Qualcomm guided QCT (Qualcomm (NASDAQ:QCOM) CDMA Technologies) semiconductor business revenue in the range of $3.9 billion to $4.5 billion and QTL (Qualcomm Technology Licensing) licensing business revenue in a range of $1 billion to $1.2 billion.
Expectations for 3G/4G/5G global device shipments, meanwhile, were maintained, and 5G global handset shipments estimated in the range of 175 million to 225 million.
"Our strong fiscal first quarter financial performance reflects a significant inflection point for Qualcomm as we begin to realize the benefits from the ramp of 5G,” said CEO Steve Mollenkopf.
Qualcomm forecast second-quarter earnings in the range of $0.80 to $0.95 a share on revenue of $4.9 billion to $5.7 billion, compared with consensus estimates of $0.86 a share on revenue of $5.1 billion.
Qualcomm shares are up 3% from the beginning of the year, still down 5.47% from its 52-week high of $96.17 set on Jan. 17. They are broadly in line with the S&P 500, which is up 2.78% year to date.
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