Qualcomm Shares Fall as Weak Guidance Overshadows Q2 Earnings Beat
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Qualcomm reported fiscal second-quarter results that exceeded analyst expectations for adjusted earnings per share and revenue, but issued a weaker-than-anticipated forecast for the current quarter. Q2 adjusted EPS of $2.65 and revenue of $10.6 billion both slightly surpassed estimates, driven by strong growth in its automotive and Internet of Things segments, despite a 13% decline in handset sales. However, the company's guidance for the current quarter, projecting adjusted EPS of $2.10-$2.30 and revenue of $9.2 billion-$10 billion, fell below Wall Street consensus, leading to a 2.7% after-hours stock decline. This guidance miss is the critical takeaway for traders, signaling potential near-term headwinds despite the Q2 beat and ongoing diversification efforts, with management citing a challenging memory environment.
At the time of this announcement, QCOM was trading at $172.67 on NASDAQ in the Technology sector, with a market capitalization of approximately $166.5B. The 52-week trading range was $121.99 to $205.95. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.