Qualcomm Q3 Profit Drops, Plans Price Hikes as Costs Bite; Stock Falls 7.6%
QCOM sits 20% above its 52-week low of $121.99.
Summary
Qualcomm's Q3 profit fell to $2B from $2.67B a year ago, with adjusted EPS of $2.21 missing estimates by two cents. Revenue declined 4% to $9.95B, beating the $9.69B consensus, but handset chip sales plunged 20%. The company plans to raise product prices to offset surging memory and input costs, a move CEO Cristiano Amon says will gradually lift gross margins. Q4 guidance was soft: adjusted EPS of $2.05-$2.25 on revenue of $9.7B-$10.5B, both below Street forecasts. Shares dropped 7.6% after hours. This follows the earlier Reuters report on the earnings release, adding the price-hike strategy and CEO's industry-wide cost warnings.
At the time of this announcement, QCOM was trading at $145.97 on NASDAQ in the Technology sector, with a market capitalization of approximately $164.1B. The 52-week trading range was $121.99 to $259.92. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.