Qualcomm Shares Rise on Strong Forecast, Huawei Agreement
- Deal with Chinese telecom company ends long-running dispute
- CEO says rebound from Covid-19 slump faster than expected
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Qualcomm Inc. gave a strong sales forecast for the current quarter, signaling that fifth generation mobile phone services are taking off. The chipmaker also announced a new licensing deal with China’s Huawei Technologies Co., sending shares up more than 12% in extended trading.
Revenue excluding certain items will be $5.5 billion to $6.3 billion in the period ending in September, the San Diego-based company said Wednesday in a statement. Analysts, on average, estimated $5.77 billion, according to data compiled by Bloomberg. Including back payments from Huawei, sales will be $7.3 billion to $8.1 billion, the company said. Profit, excluding some items, will be $1.05 to $1.25 cents a share.