Amon Cristiano, CEO of Qualcomm, talking on Squawk Box at the WEF in Davos, Switzerland on Jan. 17th, 2023.
Adam Galica | CNBC
Shares of Qualcomm fell about 9% in pre-market trading Thursday, a working day after the chipmaker reported weaker-than-expected quarterly income and steerage as it continues to see declining gross sales for smartphone chips.
Qualcomm’s third-quarter earnings beat on the top rated line, reporting modified earnings for each share of $1.87 compared to a Refinitiv consensus estimate of $1.81 for every share.
But that victory was overshadowed by weaker-than-expected income, at $8.44 billion altered vs . an $8.5 billion analyst consensus estimate, and decrease than anticipated direction for the impending quarter. Qualcomm expects earnings of among $1.8 and $2 per share on product sales ranging from $8.1 billion to $8.9 billion.
Analysts had been hoping for $1.91 for every share earnings and $8.7 billion in profits, according to a Refinitiv survey of analysts. Net revenue also dropped 52% in contrast to the year-back quarter, from $3.73 billion to $1.8 billion.
Qualcomm is additional exposed than most since of its heavy reliance on large-conclude and low-stop Android mobile phone product sales. Handset chip sales declined 25% 12 months more than year, to $5.26 billion.
Deutsche Lender analyst Ross Seymore minced no words and phrases in a Thursday observe, downgrading Qualcomm to a keep and slicing his cost goal from $130 to $120. “We consider assurance in the co’s progress potential will remain challenged,” he wrote in a letter to consumers.
CNBC’s Kif Leswing and Michael Bloom contributed to this report.
