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Qualcomm reported first-quarter revenue tax growth of 62%, to $ 8.224 billion, but still lost the consensual revenue estimate.
Pau Barrena / AFP via Getty Images
Investors seemed unhappy with the profits
Qualcomm
reported Wednesday at the end, as the company slightly lost the consensus revenue estimate for the first fiscal quarter. Amid a worldwide shortage of chips and high semiconductor values, this may be enough to punish them.
Shares of Qualcomm (ticker: QCOM) fell 7.6% in the extended session, after closing the regular session at $ 162.30, down 1.5%. The PHLX Semiconductor index retreated 2.1% during Wednesday’s regular trading.
The chip supplier for amateurs
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—Which reported a strong quarter last week — reported first-quarter net tax profit of $ 2.466 billion, up $ 2.12 per share, compared to a profit of $ 925 million, or 80 cents per share, a year ago. Adjusted for stock compensation, among other things, earnings amounted to $ 2.17 per share, while Wall Street was expecting $ 2.09 per share.
Despite reporting first-quarter revenue growth of 62% to $ 8.224 billion, the company lost the consensual revenue estimate of $ 8.25 million. Qualcomm executives had already said they expected sales of $ 7.8 billion to $ 8.6 billion.
“We delivered an exceptional quarter, more than doubling our year-over-year gains due to strong 5G demand for phones and the growth of our [radio frequency] front, automotive and [Internet of things] adjacencies, which led to record gains in our chip business, “said Steve Mollenkopf, CEO of Qualcomm.
Qualcomm has two segments: one sells the company’s wireless technology chips to customers who make cars, mobile devices and hardware for the Internet of Things. Its second segment makes money by inventing new types of technology that help various aspects of the wireless industry and grant technology licenses to customers. The company said its licensing segment generated sales of $ 1.65 billion, up 18% from a year ago.
Qualcomm’s wireless business posted double-digit earnings in quarterly revenue, up 81% to $ 6.53 billion from $ 3.6 billion the previous year. Demand for smart chips boosted much of this growth, as the mobile and radio frequency segments saw sales growth of 79% to $ 4.232 billion and 157% to 1.06 million dollars, respectively.
“In particular, our strong performance and our outlook would have been even stronger if we hadn’t limited our supply,” Mollenkopf said in Wednesday’s conference call.
Amid car factory shutdowns due to a shortage of microchips, Qualcomm’s first-quarter fiscal car sales rose 44% to $ 212 million.
For the second fiscal quarter, Qualcomm forecast adjusted earnings of $ 1.55 to $ 1.75 per share and sales of $ 7 billion to $ 8 billion. Analysts had expected adjusted earnings of $ 1.55 per share on sales of $ 7.09 billion.
Shares of Qualcomm have gained 88% in the past year, as the PHLX Semiconductor index rose 18%.
Write to Max A. Cherney at [email protected]