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Qualcomm reported first-quarter fiscal revenue growth of 62% to $ 8.24 billion, but still missed consensus revenue.
Pau Barrena / AFP via Getty Images
Investors seem dissatisfied with earnings
Qualcomm
reported late Wednesday because the company slightly missed consensus revenue for the fiscal first quarter. Amid a shortage of chips around the world and high-flying semiconductor supplies, that could be enough to punish the stock.
Qualcomm share (ticker: QCOM) fell 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 normal trading on Wednesday.
The chip provider to people like
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– which reported a strong quarter last week – reported fiscal net income in the first quarter of $ 2.46 billion, which is $ 2.12 per share, compared to a profit of $ 925 million, or 80 cents per share, a year ago. Adjusted for, among other things, share compensation, earnings were $ 2.17 per share, while Wall Street expected $ 2.09 per share.
Despite fiscal revenue growth of 62% to $ 8.24 billion in the first quarter, the company missed the $ 8.25 billion consensus revenue. Qualcomm executives said earlier that they expect sales of $ 7.8 billion to $ 8.6 billion.
“We delivered an extraordinary quarter, more than doubling earnings year-on-year due to strong 5G demand in devices and growth in our [radio frequency] front-end, engine and [Internet of things] deputies, which is generating record earnings in our chip business, “said Qualcomm CEO Steve Mollenkopf.
Qualcomm has two segments: one sells the company’s wireless technology chips to customers who use cars, mobile devices and hardware on the Internet. The second segment earns money by inventing new types of technology that help different aspects of the wireless industry and license the technology to customers. The company said its licensing segment generated $ 1.66 billion in sales, up 18% from a year ago.
Qualcomm’s wireless business posted double-digit revenue revenue for the quarter, up 81% to $ 6.53 billion from $ 3.62 billion a year ago. Demand for chips destined for smartphones has driven much of the growth, as devices and radio frequency segments reported 79% to $ 4.23 billion and 157% to $ 1.06 billion, respectively.
“Our strong performance and prospects would have been even stronger if we had not had limited supply,” Mollenkopf said at the conference on Wednesday.
Amid the shutdown of carmakers due to a shortage of microchips, Qualcomm’s fiscal car sales rose 44% to $ 212 million in the first quarter.
For the fiscal second quarter, Qualcomm forecast adjusted earnings of $ 1.55 to $ 1.75 per share and sales of $ 7.2 billion to $ 8 billion. Analysts expected adjusted earnings of $ 1.55 per share on sales of $ 7.09 billion.
Qualcomm shares have risen 88% over the past year as the PHLX Semiconductor index rose 18%.
Write to Max A. Cherney at [email protected]