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Qualcomm reported first-quarter revenue growth of 62% to $ 8.24 billion, but still missed the consensus revenue estimate.
Pau Barrena / AFP via Getty Images
Investors seemed dissatisfied with the profits
Qualcomm
reported on Wednesday, as the company slightly lost the consensus revenue estimate for the first fiscal quarter. Amid a shortage of chips around the world and rising semiconductor stocks, this may be enough to punish the stock.
Qualcomm’s shares (ticker: QCOM) plunged 7.6% in the extended session, after closing the regular session at $ 162.30, down 1.5%. The PHLX Semiconductor index declined 2.1% during Wednesday’s regular trading.
The chip supplier for people like
Apple
—Which reported a strong quarter last week — reported a fiscal first quarter net profit of $ 2.46 billion, which equates to $ 2.12 per share, compared to a profit of $ 925 million, or 80 cents a share. action a year ago. Adjusted for stock compensation, among other things, earnings totaled $ 2.17 per share, while Wall Street expected $ 2.09 per share.
Despite reporting a first-quarter revenue growth of 62% to $ 8.24 billion, the company lost its consensus revenue estimate of $ 8.25 billion. Qualcomm executives previously said they expected sales of $ 7.8 billion to $ 8.6 billion.
“We delivered an exceptional quarter, more than doubling gains year on year due to strong demand for 5G handsets and growth in our [radio frequency] front-end, automotive and [Internet of things] surroundings, which generated 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 that make cars, mobile devices and hardware used in the Internet of Things. Its second segment makes money by inventing new types of technology that help various aspects of the wireless industry and licensing the technology to customers. The company said its licensing segment generated sales of $ 1.66 billion, an 18% increase over the previous year.
Qualcomm’s wireless business recorded a double-digit gain in revenue in the quarter, increasing 81% to $ 6.53 billion from $ 3.62 billion a year ago. Demand for smart phone chips drove much of this growth, as its handset and radio frequency segments reported sales growth of 79% to $ 4.23 billion and 157% to $ 1.06 billion, respectively.
“Notably, our strong performance and outlook would have been even stronger had we not been restricted,” Mollenkopf said in the conference call on Wednesday.
Amid auto plant shutdowns due to a shortage of microchips, Qualcomm’s automotive tax sales in the first quarter increased 44% to $ 212 million.
For the second fiscal quarter, Qualcomm predicted adjusted earnings of $ 1.55 to $ 1.75 per share and sales of $ 7.2 billion to $ 8 billion. Analysts had expected adjusted earnings of $ 1.55 per share on sales of $ 7.09 billion.
Qualcomm’s shares rose 88% last year, while the PHLX Semiconductor index rose 18%.
Write to Max A. Cherney at [email protected]