Qualcomm () stock surged after the company reached a settlement agreement with Inc () on its royalty dispute late Tuesday. The companies began court proceedings on Monday. As part of the deal, will pay the chipmaker and the two sides agreed to a six-year licensing agreement, meaning Qualcomm chips will be back in iPhones. As a result of the settlement, Qualcomm expects incremental earning per share of $2 as production increases, the company said.
The San Diego chipmaker saw shares rise nearly 16% to $81.61, while the iPhone maker’s stock edged up 0.4% to $200.18.
International Business Machines Corporation () stock dipped after a quarterly decline in revenue and net income. The tech giant saw revenue drop $18.2 billion in the first quarter from $19.1 billion in the year-ago quarter, missing expectations of $18.5 billion. Income slipped to $1.6 billion from $1.7 billion in the previous quarter. The company beat on earnings, posting $2.25 per share against expectations of $2.22 EPS. Looking forward, it reiterated its full-year outlook of $13.90 EPS or more, compared with analysts’ expectations of $13.91.
Shares fizzled out 5.2% to $137.57.
Corporation (), which supplied chips to during their dispute with Qualcomm, decided to get out of the 5G modem business after the two companies settled their dispute. “In the smartphone modem business it has become apparent that there is no clear path to profitability and positive returns,” CEO Bob Swan said. The company will continue to invest in 5G network infrastructure.
The stock grew nearly 3% to $58.33.
Inc (NASDAQ:UAL) soared after reporting first-quarter net income after the close Tuesday that doubled to $292 million. Despite the concerns around 737 MAX planes that affected the sector as a whole, the airline flew more passengers than it ever had in a first quarter. Earnings came in at $1.09 per share on revenue of $9.58 billion, compared to Street expectations of $0.94 EPS on revenue of $9.6 billion.
Shares ascended almost 4% to $88.49.
(NASDAQ:CSX) stock rolled ahead after it reported first quarter earnings late Tuesday that rose to $1.02 per share from $0.78 EPS in the previous year. Analysts had expected $0.91 EPS. The transportation-focused holding company’s revenue was $3.01 billion, right in line with expectations, fueled by volume growth and price gains.
Investors are working on the railroad, sending the share price up 4% to $78.92.
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