QualcommWall Street expects second-quarter earnings to be reported Wednesday morning after the bell. This beat Wall Street’s expectations and drove the stock higher by over 4% in extended trades.

This is how Qualcomm performed against Refinitiv’s consensus expectations.

• EPS: Adjusted $3.21 versus expected $2.91, an increase of 69% over the previous year
• Revenue: 11.16% billion adjusted versus 10.60 billion anticipated, an increase of 41% over the previous year
• QCT (chip sales): $9.55 billion versus $8.86 expected per StreetAccount, up 52% year-over-year
• QTL (technology licensing)$1.58 Billion versus $1.55 per StreetAccount. This is a 2% decrease year-over-year

Qualcomm claimed it would earn between $2.75- $2.95 per share on sales of $10.9 million for its third quarter earnings. Wall Street was expecting a forecast that would exceed the company’s $9.98billion sales guidance.

Qualcomm’s main revenue source is selling modems, processors and modems that are used for smartphones. It also licenses technology to connect to cellular networks. On Wednesday, the market was more skeptical about Qualcomm’s 2022 plans. The company benefited from high demand and low supply in response to the Covid-19 pandemic.

Qualcomm’s CEO Cristiano Amon has made it clear to investors that Qualcomm is capable of being a chip supplier for additional markets as well as diversifying away from its core handset chip business.

The quarter ended in March saw growth across all four major markets for Qualcomm chips.

The largest market for Qualcomm chips was handsets. This suggests that there has been no slowdown in smartphone sales due to inflationary conditions.

A business that sells parts to enable 5G connections called RF Front-End, which grew 28%, reached $1.16 billion.

Although the automotive market is still small, the company believes it can create partnerships with suppliers and automakers that will allow for more growth. Qualcomm recorded $339 million in automotive sales. This is an increase of 41% each year. However, Veoneer revenues weren’t taken into account in March quarter. Qualcomm plans to close the Veoneer acquisition this quarter.

IoT, which produces low-power chips and cheap chips, saw 61% increase to $1.72 Billion.

Qualcomm claimed it paid out $764m in cash dividends during quarter and bought back $951m worth of its shares.