- For the second quarter, the company sees adjusted earnings of $2.45 - $2.65, lower than the $2.87 expected by Wall Street.
- The company pinned the downbeat earnings guidance to memory supply constraints.
- Amon said in an interview with CNBC that the company now expects its smartphone customers to focus on higher-end models which can absorb the rise in memory prices.
Qualcomm Incorporated (QCOM) on Wednesday forecast second quarter earnings below Wall Street expectations, sending shares tumbling down 9% after hours.
For the second quarter, the company sees adjusted earnings of $2.45 - $2.65, lower than the $2.87 expected by Wall Street. Revenue for the period is expected to be $10.2 billion - $11.0 billion, below the $11.02 billion expected by Wall Street analysts, as per data from Fiscal AI.
The company’s revenue and earnings numbers for the first quarter, however, beat Wall Street expectations.
Q1 Numbers
The company reported Q1 revenues of $12.25 billion, up from $11.67 billion reported in the corresponding quarter of fiscal 2025, and above an analyst estimate of $12.15 billion. The quarterly revenue numbers also hit a new record for the semiconductor company which recorded revenue growth in both its licensing business as well as its semiconductor business for mobile, automotive, and internet of things applications.
The company recorded $7.82 billion in revenue from its handset customers and $1.1 billion from its automotive business in Q1. Revenue from the iot applications came to $1.69 billion.
Adjusted diluted earnings per share in the quarter came in at $3.50, above the $3.4 expected by Wall Street.
“While our near-term handsets outlook is impacted by industry-wide memory supply constraints, we are encouraged by end-consumer demand for premium and high tier smartphones, and remain on track to achieve our fiscal 2029 revenue goals,” said Cristiano Amon, President and CEO of Qualcomm.
The rising demand for memory for data centers are creating hurdles in acquiring them for smartphones and other devices.
Amon said in an interview with CNBC that the company now expects its smartphone customers to focus on higher-end models which can absorb the rise in memory prices as compared to budget models.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around QCOM stock rose from ‘neutral’ to ‘extremely bullish’ territory over the past 24 hours, while message volume remained at ‘high’ levels.
QCOM stock has dropped 14% over the past 12 months.
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