06:59 AM EDT, 08/01/2024 (MT Newswires) -- Qualcomm ( QCOM ) reported better-than-expected fiscal third-quarter results amid strong automotive sales growth but warned of a revenue hit from the US government's decision to revoke its license to export products to China's Huawei Technologies.

Qualcomm ( QCOM ) expects adjusted earnings of $2.45 to $2.65 per share for the fiscal fourth quarter, while the Street is looking for $2.53. The company forecasts revenue to be in a range of $9.5 billion to $10.3 billion in the ongoing quarter, it said late Wednesday, compared with the consensus on Capital IQ for $9.8 billion.

Revenue in the Qualcomm CDMA technologies division, which represents the semiconductor business, is projected to be between $8.1 billion and $8.7 billion. The technology licensing unit revenue is expected to come in the range of $1.35 billion to $1.55 billion in the fourth quarter.

"Our license to export products to Huawei, which was set to expire in late calendar 2024 was revoked on May 7," Chief Financial Officer Akash Palkhiwala said during an earnings call, according to a Capital IQ transcript. "This change will impact our revenues in both the current quarter and the first quarter of fiscal 2025."

Qualcomm's ( QCOM ) shares rose 8.4% at the close Wednesday trading but declined 1.3% in Thursday's premarket activity.

For the three-month period ended June 23, adjusted EPS rose 25% year over year to $2.33, ahead of analysts' $2.26 estimate. Adjusted revenue advanced 11% from last year to $9.39 billion for the third quarter, surpassing the market view for $9.22 billion. Within the Qualcomm CDMA technologies segment, automotive revenue climbed to $811 million from $434 million in the prior-year period. On a sequential basis, the company expects the auto business to remain flat in the fourth quarter, the CFO told analysts.

Handsets revenue increased 12% to nearly $5.9 billion, while Internet of Things dropped 8% to $1.36 billion. The technology licensing division's sales grew 3% year over year to $1.27 billion.

"We are on track to deliver approximately 50% year-over-year revenue growth in fiscal 2024, providing confidence in our ability to execute to our long-term targets," Palkhiwala said.

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