Qualcomm headquarters in Sorrento Valley. Courtesy of the company

Qualcomm‘s stock was trading higher Thursday after the company said it expects to receive nearly $5 billion from its settlement with Apple over smartphone patents.

The San Diego-based wireless pioneer revealed the settlement details in its quarterly earnings report released after the close of trading on Wednesday.

The company’s shares were trading over $88, up more than 2 percent, on Wall Street Thursday morning, near a 52-week high.

“While we continue to assess the accounting impacts of the agreements, our financial guidance for the third quarter of fiscal 2019 includes estimated revenues of $4.5 billion to $4.7 billion resulting from the settlement,” the company said.

The settlement announced in San Diego last month includes a six-year global patent licensing agreement with Apple with an option to extend for two additional years, as well as a a multi-year chip-supply agreement.

In its second fiscal quarter ended March 31, Qualcomm earned $663 million, or 55 cents per share, on revenue of $4.98 billion, compared with $330 million, or 22 cents per share, on revenue of $5.22 billion a year ago.

“We delivered a better than expected quarter with earnings per share above the high end of our estimates,” said CEO Steve Mollenkopf. “We are also pleased to have reached multi-year agreements with Apple and look forward to continuing to support them as a customer.”

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Chris Jennewein

Chris Jennewein is Editor & Publisher of Times of San Diego.