Font size
Qualcomm reported first-quarter revenue growth of 62% to $ 8.24 billion, but still missed the consensus estimate of revenue.
Pau Barrena / AFP via Getty Images
Investors seemed dissatisfied with the earnings
Qualcomm
reported late Wednesday, as the company slightly missed its fiscal first quarter consensus revenue estimate. Amid a shortage of chips around the world and high-flying semiconductor stocks, that could be enough to penalize the stock.
Qualcomm stock (ticker: QCOM) plummeted 7.6% in the extended session, after closing the regular session at $ 162.30, down 1.5%. The PHLX Semiconductor index fell 2.1% during regular trading on Wednesday.
The chip supplier for, among other things
Apple
– Which reported a strong quarter last week – reported first-quarter net income of $ 2.46 billion, which equates to $ 2.12 per share, compared to earnings of $ 925 million, or 80 cents a share, a year ago. Adjusted for, among other things, equity compensation, earnings were $ 2.17 per share, while Wall Street expected $ 2.09 per share.
Despite reporting first-quarter sales growth of 62% to $ 8.24 billion, the company missed the consensus estimate of $ 8.25 billion. Qualcomm executives had previously said they expected sales of $ 7.8 billion to $ 8.6 billion.
“We delivered an exceptional quarter, more than doubling our annualized profit due to strong demand for 5G in handsets and growth in our [radio frequency] front-end, automotive and [Internet of things] neighboring areas, which brought record revenues in our chip business, ”said Steve Mollenkopf, Qualcomm CEO.
Qualcomm has two segments: One sells the company’s wireless technology chips to customers who make cars, mobile devices, and hardware used in the Internet of Things. The second segment makes money by inventing new types of technology that help different aspects of the wireless industry and by licensing the technology to customers. The company said the licensing segment generated revenue of $ 1.66 billion, an 18% increase from a year ago.
Qualcomm’s wireless business posted double-digit revenue growth for the quarter, up 81% to $ 6.53 billion, from $ 3.62 billion a year ago. Demand for chips for smartphones pushed much of that growth as the cell phone and radio frequency segments reported revenue growth of 79% to $ 4.23 billion and 157% to $ 1.06 billion, respectively.
“Our strong performance and outlook in particular would have been even stronger if we had not had a supply constraint,” Mollenkopf said in the conference call on Wednesday.
Amid the auto plant shutdown due to a microchip shortage, Qualcomm sales rose 44% in the first quarter of the fiscal year to $ 212 million.
For the fiscal second quarter, Qualcomm forecast adjusted earnings of $ 1.55 to $ 1.75 per share and revenue of $ 7.2 billion to $ 8 billion. Analysts had expected adjusted earnings of $ 1.55 per share on revenue of $ 7.09 billion.
Qualcomm stock is up 88% over the past year, while the PHLX Semiconductor index is up 18%.
Write to Max A. Cherney at [email protected]