Amon Cristiano, CEO of Qualcomm, speaking on Squawk Field on the WEF in Davos, Switzerland on Jan. seventeenth, 2023.
Adam Galica | CNBC
Shares of Qualcomm fell about 10% in Thursday morning shopping for and promoting, a day after the chipmaker reported weaker-than-expected quarterly revenue and steering as a result of it continues to see declining product sales for smartphone chips.
Qualcomm’s third-quarter earnings beat on the best line, reporting adjusted earnings per share of $1.87 versus a Refinitiv consensus estimate of $1.81 per share.
However that victory was overshadowed by weaker-than-expected revenue, at $8.44 billion adjusted versus an $8.5 billion analyst consensus estimate, and reduce than anticipated steering for the upcoming quarter. Qualcomm expects earnings of between $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 per share earnings and $8.7 billion in revenue, consistent with a Refinitiv survey of analysts. Web income moreover dropped 52% compared with the year-ago quarter, from $3.73 billion to $1.8 billion.
Qualcomm is further uncovered than most resulting from its heavy reliance on high-end and low-end Android cellphone product sales. Handset chip product sales declined 25% yr over yr, to $5.26 billion.
Deutsche Financial institution analyst Ross Seymore minced no phrases in a Thursday remember, downgrading Qualcomm to a keep and slicing his price purpose from $130 to $120. “We imagine confidence within the co’s progress potential will stay challenged,” he wrote in a letter to consumers.
CNBC’s Kif Leswing and Michael Bloom contributed to this report.