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Qualcomm Shares Surge 8% After Robust Earnings and $15 Billion Buyback Plan

AInvestWednesday, Nov 6, 2024 5:38 pm ET
1min read

Recently, Qualcomm has been a focal point in the market with its optimistic sales forecast for the current fiscal quarter, indicating potential positive shifts in the mobile device sector. Following this announcement, Qualcomm's stock experienced a significant surge in after-hours trading.

The company has projected its revenue for the quarter ending in December to be between $10.5 billion and $11.3 billion, surpassing analysts' average estimate of $10.5 billion. Excluding certain items, the anticipated earnings per share could reach as high as $3.05, exceeding Wall Street expectations.

Investors are keenly observing for signs of recovery in the smartphone market, and Qualcomm's recent financial results have provided some encouragement. For the fourth fiscal quarter, the company reported adjusted earnings per share of $2.69, with revenue increasing by 19% to $10.2 billion. These figures topped analysts' expectations of $2.56 per share and $9.91 billion in revenue.

Additionally, Qualcomm announced a substantial $15 billion stock repurchase program, which further boosted investor confidence. The robust financial performance and strategic stock buyback initiative contributed to a roughly 8% jump in the company's after-hours stock price. By mid-week, Qualcomm's shares closed up 4.3% at $172.99, expanding the year's gains to approximately 20%.

This positive momentum reflects growing optimism about Qualcomm's positioning in the evolving mobile technology landscape and the overall health of the tech sector, despite broader economic challenges.

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