Qualcomm provided a below-expected September quarter revenue forecast on Wednesday, sending its shares lower in after-hours trading.
The maker of mobile processors and 5G wireless chipsets blamed a slower recovery in China and a challenging macro environment for disappointing results.
For the June quarter, Qualcomm reported…
Qualcomm provided a below-expected September quarter revenue forecast on Wednesday, sending its shares lower in after-hours trading.
The maker of mobile processors and 5G wireless chipsets blamed a slower recovery in China and a challenging macro environment for disappointing results.
For the June quarter, Qualcomm reported adjusted earnings per share of $1.87, compared with the Wall Street consensus estimate of $1.81, according to FactSet. Revenue came in at $8.4 billion, below analyst expectations of $8.5 billion.
The bad news was the orientation. Qualcomm gave a revenue forecast for the current quarter, ending in September, of $8.1 billion to $8.9 billion, which was below the consensus of $8.7 billion at the midpoint of the range. .
Qualcomm shares fell 4.8% in after-close trading on Wednesday following the release.
Global demand for smartphones has been soft. Last week, research firm Canalys said that global mobile phone shipments in the second quarter fell 10% year after year.
Taiwan Semiconductor Manufacturing
(TSM) also said last month that the smartphone market had deteriorated over the past three months.
Announcement – Scroll to Continue
As a large provider to the mobile market, it’s hard for Qualcomm to overcome any overall market weakness.
Qualcomm shares have declined 12% in the past 12 months, compared with a 26% rise for the
exchange-traded fund (SOXX), which tracks the ICE Semiconductor Index.
Write to Tae Kim at tae.kim@barrons.com
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