Qualcomm stock falls after its cuts outlook
Qualcomm’s stock price fell sharply overnight after cutting its revenue and earnings outlook.
Qualcomm’s Nasdaq stock fell 8.28% in after-hours trading to $39.10 (€29.22) after falling 66 cents prior to the release of its quarterly result.
Its projected earnings of 40 cents to 44 cents a share for coming quarter fell short of consensus analyst estimates of 44 cents, according to a Bloomberg survey.
It forecast sales of between $2.5-2.7 billion, a fall of 2-9%.
The company reported net income of $774 million, compared with a $289 million loss a year ago, which included a $748 million patent suit settlement with Broadcom. It posted an $841 million profit in the previous quarter.
Revenue increased 8% to $2.66 billion year on year, but was flat compared with the prior quarter.
The San Diego firm is a bellwether for the mobile sector, as its chips and technologies are used right across the industry in both handsets and networks.
Mark McKechnie, an analyst at Broadpoint Amtech, said the results showed the continuing impact of the economic slump in the US, Europe and Japan.
“The hope is that the higher price markets will come back, but from this report it doesn’t look like they’re seeing signs of that,” he told Bloomberg.