Cristiano Amon, president and CEO of Qualcomm, speaks all through the Milken Institute Global Conference on May possibly 2, 2022, in Beverly Hills, Calif.
Patrick T. Fallon | AFP | Getty Pictures
Qualcomm noted next-quarter earnings on Wednesday that were in line with analyst expectations but noticed profits from handset chips, a core business for the business, decrease 17% on an yearly foundation.
Qualcomm shares fell more than 2% in extended investing.
Here is how the chipmaker did vs . Refinitiv consensus estimates:
- EPS: $2.15 per share, modified, compared to expectations of $2.15 per share
- Revenue: $9.27 billion, vs . expectations of $9.1 billion
In the quarter ending in March, Qualcomm explained net profits fell 42% to $1.70 billion, or $1.52 for each share, from $2.93 billion, or $2.57 per share, a calendar year back.
Qualcomm claimed it anticipated all around $8.5 billion in gross sales in the recent quarter, small of Wall Avenue anticipations of $9.14 billion. Analysts were expecting present-day-quarter earnings guidance of $2.16 for every share, but Qualcomm explained it envisioned it that to be around $1.80.
Qualcomm CEO Cristiano Amon in a statement blamed the success on a demanding ecosystem, and the company mentioned it experienced not noticed evidence that smartphone sales are recovering in China. The smartphone industry is on the lookout at a tricky 2023, with shipments for the global market declining in excess of 14% in the very first quarter, according to IDC.
Qualcomm’s chip segment, called QCT, sells smartphone processors, automotive chips, and other components for innovative electronics. It declined 17% to $7.94 billion in income throughout the quarter.
The largest part of QCT’s gross sales come from handset chips, which are the processors at the heart of most Android phones. Qualcomm noted $6.11 billion in handset revenue, down 17% from past 12 months.
Qualcomm’s automotive enterprise, which consists of chips and application for autos, is however modest, whilst it confirmed 20% advancement during the quarter to $447 million in profits. It is really described as aspect of QTL.
Qualcomm’s licensing segment, QTL, which sells obtain to systems desired for mobile assistance, described an 18% once-a-year minimize in revenue to $1.29 billion.
Qualcomm reported it produced $900 million in share repurchases and compensated $800 million in dividends throughout the quarter.