The shares of Qualcomm Inc. skyrocketed to record highs in the extended session on Wednesday, after the chip company expected a big jump in earnings and revenues in the current quarter thanks to a settlement with Chinese technology giant Huawei.
after hours, the stock rose by more than 10%, after rising 1.7% in the regular session to $ 93.03. Shares were $ 100 during the out-of-hours session; Qualcomm stocks briefly hit $ 100 in intraday trading before the dot-com crash in 2000, but have not reached triple numbers since, hitting a record high of $ 95.91 in January.
The company reported a third-quarter fiscal net result of $ 845 million, or 74 cents per share, compared to $ 2.15 billion, or $ 1.75 per share, for the prior year period. Adjusted for share-based compensation and other securities, earnings were 86 cents per share, compared to 80 cents per share in the same period last year.
Sales were even $ 4.89 billion last year. Net income and income for the same period last year was adjusted by license income from a settlement of Apple Inc. Exclude AAPL,
Analysts surveyed by FactSet had forecast adjusted earnings of 71 cents per share on revenue of $ 4.81 billion.
Qualcomm expects fourth-quarter GAAP earnings from $ 2.12 to $ 2.32 per share with revenues from $ 7.3 billion to $ 8.1 billion, well ahead of analyst estimates. Qualcomm entered into a settlement with Huawei that will reportedly add approximately $ 1.8 billion in revenue and $ 1.38 in earnings per share. After adjusting for Huawei’s one-time windfall, Qualcomm said it would have adjusted earnings from $ 1.05 to $ 1.25 per share. Analysts had forecast adjusted earnings of $ 1.09 per share with revenues of $ 5.76 billion.
“We made gains above the high level of our range, continued to execute in our product and licensing businesses and entered into a new long-term licensing agreement with Huawei, which positions us all well for the balance sheet of 2020 and beyond,” Chief Executive Steve Mollenkopf said in a prepared statement.
The settlement includes money that Qualcomm owes from previous quarters, as well as a new, worldwide, worldwide patent licensing agreement, Qualcomm revealed.