Cristiano Amon, president and CEO of Qualcomm, speaks at the Milken Institute Global Conference on May 2, 2022 in Beverly Hills, California.
Patrick T. Fallon | AFP | Getty Images
Qualcomm shares fell 5% in extended trading Wednesday after the chipmaker reported in-line financial earnings for the fourth quarter but gave poor guidance for the first quarter.
Here’s how the company did it:
- Earnings: $3.13 per share, adjusted, versus $3.13 per share expected by analysts, according to Refinitiv.
- Income: $11.39 billion, adjusted, versus $11.37 billion expected by analysts, according to Refinitiv.
Total revenue grew 22% year-over-year in the quarter ended Sept. 25, according to a statement.
In terms of guidance, Qualcomm called for fiscally adjusted first-quarter earnings of $2.25 to $2.45 per share on $9.2 billion to $10 billion in revenue. Analysts polled by Refinitiv had expected earnings per share of $3.42 and revenue of $12.02 billion.
“Given the uncertainty caused by the macroeconomic environment, we are updating our guidance for calendar year 2022 3G/4G/5G phone volumes from a year-over-year mid-single-digit percentage decline, to a low double-digit percentage decline,” Qualcomm said in the report.
“The rapid deterioration in demand and the easing of supply constraints in the semiconductor industry has resulted in increased channel inventory.”
Revenue in the Qualcomm CDMA Technologies, or QCT category, which includes smartphone chips, radio frequency front-end components, automotive chips and internet devices, totaled $9.9 billion. That was up 28%, and that’s more than the $9.87 billion consensus among analysts polled by StreetAccount.
Within the QCT segment, mobile phone revenue came in at $6.57 billion, up 40% and a hair below the StreetAccount consensus of $6.59 billion.
Qualcomm Technology Licensing, or QTL, the other major Qualcomm unit that consists of license fees related to 5G and other technologies the company makes, posted $1.44 billion in revenue, which was up 8% but below the StreetAccount consensus of 1, 58 billion dollars.
During the quarter, Qualcomm said it had extended a patent license agreement with Samsung until 2030. And Arm, which provides the chip architectures Qualcomm uses, filed a lawsuit against Qualcomm for breach of license agreements and trademark infringement.
Despite the after-hours move, Qualcomm shares are down 37% so far this year, while the broader S&P 500 is down 20% over the same period.
Executives will discuss the results with analysts on a conference call starting at 4:45 p.m. ET.
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Correction: Updated to reflect Qualcomm reported $6.57 billion in phone revenue. An earlier version rounded up to $6.6 billion.