Qualcomm Inc. shares fell in the extended session on Wednesday after the chip maker’s revenue was slightly below expectations, recognizing that industry-wide supply constraints were affecting performance.
“Notably, our strong performance and our outlook would have been even stronger had we not been limited by supply,” Qualcomm QCOM
Chief Executive Steve Mollenkopf said of the analyst’s call.
Qualcomm President Cristiano Amon detailed the call about the supply situation.
“We saw, I think, probably shortages across the industry,” said Amon. Chip demand is outstripping the supply of many chip makers and hardware companies in today’s digital-dominated COVID-19 environment.
In early January, Qualcomm said Amon will replace Mollenkopf as CEO on June 30.
“The V-shaped recovery that we’ve seen across the industry and all the accelerated digitization is driving semiconductors, and we see that across the board,” Amon told analysts during the conference call.
Qualcomm reported net income for the first fiscal quarter of $ 2.46 billion, or $ 2.12 per share, compared to $ 925 million, or 80 cents per share, in the same period last year. Adjusted earnings, which exclude compensation expenses based on shares and other items, were $ 2.17 per share, compared to 99 cents per share for the same period last year. Revenue increased to $ 8.24 billion, from $ 5.08 billion in the same quarter last year.
Analysts surveyed by FactSet predicted $ 2.10 per share on revenue of $ 8.27 billion, based on Qualcomm’s forecast of $ 1.95 to $ 2.15 per share and revenue of $ 7.8 billion to $ 8.6 billion.
Qualcomm said its wireless and mobile businesses, which include 5G chips and handset sales, increased 79% to $ 4.22 billion from the previous year, while sales of chips for mobile device antennas, or wireless products. RF front-end, increased 157% to $ 1.06 billion compared to the previous year’s quarter.
Shares fell more than 8% on the floor after hours immediately after the results were released, and fell 7.4% at the end of the conference call. This followed a 1.5% drop in the regular session, with Qualcomm’s shares closing at $ 162.30.
Qualcomm foresaw adjusted second quarter earnings of $ 1.55 to $ 1.75 per share on revenue of $ 7.2 billion to $ 8 billion, while analysts estimated $ 1.58 per share and revenue of $ 7.11 billion.
In the past 12 months, Qualcomm’s shares have risen 88%, compared with a 65% gain for the PHLX Semiconductor SOX index,
an increase of 18% by the S&P 500 SPX index
and a 47% gain in the Nasdaq Composite Index COMP.