Qualcomm reported first-quarter earnings WednesdayAnalyst expectations were exceeded for guidance and revenue. The company also offered strong prospects for its fiscal second-quarter.

Qualcomm stock dropped to over 8% during extended trading Wednesday, but then recovered and fell back to around 2%. Before the release of results, it rose 6.25 percent during trading.

Qualcomm released its earnings reports at same time as Meta (Facebook)This triggered a decline in tech shares following the closing of the market.

This is how Qualcomm compared to Refinitiv consensus estimates for the quarter ended Dec. 26, 2012.

• EPS: Adjusted: $3.23 vs. expected $3.01, an increase of 49% over the previous year
• Revenue: Adjusted $10.7 billion vs. expected $10.42 trillion, an increase of 30% year-overyear

Qualcomm stated that it expects sales of between $10.2 billion to $11 billion for the next quarter. This is in contrast with analyst expectations of $9.6 trillion.

QCT, Qualcomm’s chip business reported $8.85Billion in sales. This is 35% more than the quarter before. The growth rate was slower than the 63% reported in the same quarter last.

Qualcomm divides its chip division into 4 categories. Each of them saw a quarter-high increase in revenue. Principally, the revenue increase was driven by an 42% jump in handset sales to $5.98billion.

According to the company, Snapdragon chipsets are the core of Android smartphones that provide processing power and connectivity over 5G. They saw an annual 60% increase in sales.

Cristiano Amon, CEO of Qualcomm has placed a high priority on diversifying markets where Qualcomm chips are sold. Qualcomm’s automobile business saw 21% growth in chips sales to $256 million. Sales of its IoT division which concentrates on low-power chips grew 41% to 1.48 billion.

The division RF front end, which is focused on the chips required for wireless connectivity, increased 7% to $1.13 million. In Qualcomm’s fiscal 2021, the division experienced a 76% growth.

QTL, QTL’s profit-making technology licensing division, grew 10% in the past year to reach $1.81 billion.

Qualcomm said that due to market volatility, it hadn’t included QSI investments gains into its GAAP earnings forecasts for the second quarter. Qualcomm stated that QSI was responsible for $0.10 of its GAAP earnings per shares during the quarter.

Qualcomm reported that it bought $1.2 Billion in shares in the third quarter, and distributed $765 Million in dividends.