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Qualcomm reported first-quarter revenue growth of 62 percent to $ 8.24 billion, but still missed the consensus revenue estimate.
Pau Barrena / AFP through Getty Images
Investors seemed dissatisfied with the gains
Qualcomm
reported late Wednesday as the company slightly missed the consensus revenue estimate for the first fiscal quarter. Against the backdrop of a worldwide shortage of chips and high-flying semiconductor stocks, this may be enough to punish the stock.
Shares of Qualcomm (ticker: QCOM) fell 7.6% in the extended session, after closing the regular session at $ 162.30, down 1.5%. The PHLX Semiconductor Index retreated 2.1% during regular trading on Wednesday.
Supplier of such chips
Apple
– which reported a strong quarter last week – reported net tax revenue in the first quarter of $ 2.46 billion, which stands at $ 2.12 per share, compared to a profit of $ 925 million or 80 cents per share. action, a year ago. Adjusted for share compensation, among other things, earnings amounted to $ 2.17 per share, while Wall Street expected $ 2.09 per share.
Despite reporting first-quarter revenue growth of 62 percent to $ 8.24 billion, the company missed a consensual revenue estimate of $ 8.25 billion. Qualcomm executives previously said they expected sales of $ 7.8 billion to $ 8.6 billion.
“We delivered an exceptional quarter, more than doubling year-on-year earnings due to strong demand for 5G phones and growth in [radio frequency] front-end, car and [Internet of things] adjacencies, which have led to record gains in our chip business, ”said Steve Mollenkopf, CEO of Qualcomm.
Qualcomm has two segments: one sells the company’s wireless technology chips to customers who produce machines, mobile devices and hardware used in the Internet of Things. Its second segment earns money by inventing new types of technology that help various aspects of the wireless industry and license customers’ technology. The company said its licensing segment generated $ 1.66 billion in sales, up 18% from a year ago.
Qualcomm’s wireless business posted a double-digit revenue gain for the quarter, up 81 percent to $ 6.53 billion from $ 3.62 billion a year ago. Demand for smartphone chips boosted much of this growth, as phone and radio segments reported 79% sales to $ 4.23 billion and $ 157% to $ 1.06 billion, respectively. .
“In particular, our strong performance and prospects would have been even stronger if we had not been constrained in supply,” Mollenkopf said in a conference call on Wednesday.
Amid automobile shutdowns due to a lack of microchips, Qualcomm’s fiscal sales in the first quarter rose 44% to $ 212 million.
For the second fiscal quarter, Qualcomm forecast earnings of $ 1.55 to $ 1.75 per share and sales of $ 7.2 billion to $ 8 billion. Analysts had expected adjusted earnings of $ 1.55 per share from $ 7.09 billion in sales.
Qualcomm shares have gained 88% in the last year, as the PHLX Semiconductor index has risen by 18%.
Write to Max A. Cherney at [email protected]