Why did QCOM consistently beat EPS forecasts in 2024?

Qualcomm's consistent beating of EPS forecasts in 2024 can be attributed to several key factors:

1. **Strong Revenue Growth**: Qualcomm experienced significant revenue growth, particularly in its chipset and licensing businesses. For instance, the QCT segment reported an 18% increase in revenues, while the QTL segment saw a 21% increase in revenues compared to the previous year. This robust revenue growth directly contributed to higher EPS figures.
2. **Efficient Cost Management**: The company's EBT margins improved substantially, with QTL reporting a QTL EBT Margin of 74% and QCT reporting a QCT EBT Margin of 28% for Q4 FY2024. Effective cost management allowed Qualcomm to retain more earnings as profits, leading to higher EPS.
3. **Strategic Diversification**: Qualcomm's strategic initiatives in edge AI and connected computing, along with the launch of new products, have contributed to its growth. These diversification efforts have not only increased revenue but also improved profitability, thereby boosting EPS.
4. **Automotive Sector Growth**: The automotive sector experienced remarkable growth, with Qualcomm achieving its fifth consecutive quarter of record automotive revenues. The significant increase in automotive revenues, driven by the Snapdragon Digital Chassis platform, has been a major contributor to the company's financial success.
5. **Shareholder Returns**: Qualcomm returned significant amounts of capital to shareholders through stock repurchases and dividends. While not directly related to EPS, the company's commitment to shareholder returns reflects its financial strength and ability to generate profits.

In summary, Qualcomm's consistent beating of EPS forecasts in 2024 can be attributed to strong revenue growth, efficient cost management, strategic diversification, growth in the automotive sector, and effective shareholder returns strategies.