Qualcomm stock surges as results, outlook top Street on 5G strength

Qualcomm Inc. shares rallied in the extended session Wednesday after the chip maker’s quarterly results and outlook blew away Wall Street estimates as it benefits from 5G product rollouts.

Qualcomm QCOM, +2.80% reported fiscal fourth-quarter net income of $2.96 billion, or $2.58 a share, compared with $506 million, or 42 cents a share, in the year-ago period. Adjusted earnings were $1.45 a share, compared with 78 cents a share in the year-ago period.

Revenue rose to $8.35 billion from $4.81 billion in the year-ago quarter, but Wall Street analysts estimate adjusted revenue, which excludes Qualcomm’s Strategic Initiatives investment segment. Adjusted revenue rose to $6.5 billion, compared with $4.8 billion in the year-ago period.

Analysts surveyed by FactSet had forecast earnings of $1.17 a share on adjusted revenue of $5.9 billion, while Qualcomm had forecast earnings of $1.05 to $1.25 a share on adjusted revenue of $5.5 billion to $6.3 billion.

Shares surged 7% after hours, following a 2.8% rise in the regular session to close at $128.97.

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