Qualcomm jumps 15% after settling with Huawei and issuing strong earnings guidance

Qualcomm Shares Rise on Strong Forecast Huawei Agreement

Analyst Charles King of Pund-IT Inc. told SiliconANGLE that Qualcomm's deal with Huawei could also offer some potential relief to other companies too.

In an investor call, CEO Steven Mollenkopf said his firm inked a new multi-licensing agreement with Huawei.

For the September ending quarter, Qualcomm expects to make $5.5 billion to $6.3 billion with adjusted earnings per share of $1.05 to $1.25. While details of the deal are confidential, Huawei will pay Qualcomm $1.8 billion for back royalties owed for 2019 and the first six months of calendar 2020. Earnings should range from $1.05 to $1.25 per share.

The smartphone industry, which has suffered declining unit shipments since 2016, is pinning its hopes for a rebound on 5G, which will bring faster data speeds for consumers and add connections and services to now stand-alone electronics.

Reuters reported that the 5G smartphone vendor in question was believed to be Apple.

Teenager arrested for Twitter Bitcoin scam targeting Elon Musk & Mr Beast
Twitter previously said hackers used the phone to fool the social media company's employees into giving them access. Department of Justice found the teen in Hillsborough County after a "complex, nationwide investigation ".

Huawei, which is still subject to USA government restrictions, trumped Samsung for the first time in the worldwide smartphone market in the second quarter, research Canalys said on Thursday. Qualcomm's stock had gained 5.4% this year, trailing a general rally by semiconductor companies. "We are expecting the next inflection point in our 5G ramp to begin in our fiscal fourth quarter, with strong year-over-year growth in revenue and earnings per share". As CNBC noted, Qualcomm reported $4.89 billion in revenues versus expectations of $4.8 billion. Excluding certain items, profit was 86 cents, compared with Wall Street's average estimate of 70 cents.

Qualcomm provides the modems and processors that let handsets connect to networks and turn the data they receive into the smartphone features consumers have come to depend on.

Moorhead noted that the company signed 15 new 5G licenses for a total of 100, and added more than 285 Snapdragon 5G design wins for a total of 660. The company, however, has lost share in China as Huawei has focused on its home market and built devices with its own silicon.

"Our guidance for the [current] quarter ... includes an impact ... attributable to a planning assumption of an approximate 15 percent year-over-year reduction in handset shipments due to COVID-19, including a partial impact from the delay of a global 5G flagship phone launch", it reads.

Through the deal, Huawei can get complete technology patents on 5G SoC (system on a chip).

Related News:



Most liked

Taliban Announce Eid Ceasefire After a Bloody Spring
While the government of Ashraf Ghani wants a permanent ceasefire, the Taliban has replied that that's a topic to cover in talks. Finally, the Taliban announced last week that they would be ready for talks after the Eid ul Adha holiday at the end of July.

'Breaking Bad' star Bryan Cranston says he has recovered from COVID-19
In his post, the actor and director urged people to wear face masks, as the death toll in the United States climbed over 150,000. Reportedly, Bryan sat through an hour-long procedure at UCLA's Blood and Plasma Donation Center. "Be well - Stay well.

Aaron Donald ranked No. 3 on NFL Top 100
It certainly came as a surprise to many - and possibly to the Super Bowl MVP himself - and anyone who had taken the QB with a sportsbook just lost out big time.

Leak suggests 'Halo Infinite' multiplayer will be free-to-play
Irish retailer Smyth's recently posted details about Halo Infinite on their Xbox Series X page, which have since been taken down. If there's a plan to make online play free, and promote Game Pass as the replacement paid option, then things make more sense.

European Union marks assembly phase of world nuclear fusion project in France
Each reactor can power two million homes each at an operational cost similar to those of conventional nuclear machines. While it could reach full power by 2035, the experimental project is not created to produce electricity .

Epstein's ex-girlfriend Ghislaine Maxwell tries late bid to seal testimony
The documents are set to be released publicly today, but Maxwell says she will seek to appeal if the judgement is not overturned. Prince Andrew pictured with Virginia Giuffre (centre) and Ghislaine Maxwell (right).

Brad Pitt scores Emmy nomination for Saturday Night Live appearance
The sketch included Pitt's Fauci's reaction to President Trump saying we would have a vaccine "relatively soon". As the coronavirus pandemic has raged on for the last six months, we've gotten very few nice things.

Brendan Gleeson Plays Donald Trump In New Series — TRAILER
The Comey Rule will premiere on September 27 on Showtime in the U.S. , with a United Kingdom release date not yet confirmed. He added: "We made the contrast between the bags under his eyes and the orange skin softer than it actually is.

Boston Marathon bombing: Dzhokhar Tsarnaev's death sentence overturned
Yet he didn't sufficiently dig into what jurors had read or heard about the case, the judges said. He's been serving his sentence in a high-security supermax prison in Colorado.

Courteney Cox Confirmed for 'Scream 5' Return
Jamie and Guy's awesome script does that legacy justice and we're so excited to bring the next chapter of Scream to life . Scream 5 also boasts longtime franchise writer/producer Kevin Williamson as an executive producer.

National Basketball Association players took a knee before kicking off the league's reopened season
The game resumed with New Orleans Pelicans taking on Utah Jazz and Los Angeles Lakers locking horns with LA Clippers . They are fighting for a playoff spot with 28 wins and 37 losses.

Naya Rivera’s Final TV Appearance Airs On Netflix Weeks After Her Passing
In addition to her run as Glee's Santana, Rivera's acting credits included Devious Maids, Step Up: High Water and The Bernie Mac Show .

Researchers Solve A Question About Stonehenge Megaliths' Origin
After evaluating those signatures, Nash et al. had been ready to indicate to West Woods because the sarsens' earliest house. The findings show that the sarsen stones were gathered from the West Woods some 4,500 years ago.

Rafales land, Rajnath warns those who threaten territorial integrity
A large number of people had stopped their vehicles on the national highway to catch the glimpse of the Rafale jets. India's flying force has actually gotten 5 new Rafale fighter jets amid continuous border stress with China.

Rio Tinto first-half profit drops 4 pct
Rio's underlying earnings from the commodity, which accounts for about 80% of profit, rose 1% to $4.56bn as shipments rose 3%. Rio's London-listed shares were up 1.5% by 1040 GMT, outpacing a 0.6% rise in the wider market .FTNMX1770 .