Cellphone chip supplier Qualcomm Inc’s fiscal third-quarter earnings and revenue beat Wall Street estimates on strong smartphone demand, sending its shares up 3.4 percent after hours.
Qualcomm disappointed investors the previous two quarters as prices for phones fell sharply and cut into royalty payments. Qualcomm sells chips to phone makers and collects licensing fees from companies that use its patented technologies.
The San Diego-based company earned $767 million, or 47 cents a share, during the three-month period ending June 27, compared to a profit of $737 million, or 44 cents a share, during the same period last year. The latest result includes a loss of 7 cents a share from share-based compensation and 3 cents a share from tax items.