Cristiano Amon, president and CEO of Qualcomm, speaks in the course of the Milken Institute Global Conference on May 2, 2022, in Beverly Hills, Calif.
Patrick T. Fallon | AFP | Getty Images
Qualcomm reported second-quarter earnings on Wednesday that had been according to analyst expectations however noticed gross sales from handset chips, a core enterprise for the corporate, decline 17% on an annual foundation.
Qualcomm shares fell over 2% in prolonged buying and selling.
Here’s how the chipmaker did versus Refinitiv consensus estimates:
- EPS: $2.15 per share, adjusted, versus expectations of $2.15 per share
- Revenue: $9.27 billion, versus expectations of $9.1 billion
In the quarter ending in March, Qualcomm stated internet revenue fell 42% to $1.70 billion, or $1.52 per share, from $2.93 billion, or $2.57 per share, a yr in the past.
Qualcomm stated it anticipated round $8.5 billion in gross sales within the present quarter, in need of Wall Street expectations of $9.14 billion. Analysts had been anticipating current-quarter earnings steering of $2.16 per share, however Qualcomm stated it anticipated it that to be round $1.80.
Qualcomm CEO Cristiano Amon in an announcement blamed the outcomes on a difficult atmosphere, and the corporate stated it had not seen proof that smartphone gross sales are recovering in China. The smartphone market is taking a look at a tricky 2023, with shipments for the worldwide market declining over 14% within the first quarter, based on IDC.
Qualcomm’s chip section, referred to as QCT, sells smartphone processors, automotive chips, and different components for superior electronics. It declined 17% to $7.94 billion in income in the course of the quarter.
The greatest a part of QCT’s gross sales come from handset chips, that are the processors on the coronary heart of most Android telephones. Qualcomm reported $6.11 billion in handset gross sales, down 17% from final yr.
Qualcomm stated it anticipated a larger-than-normal decline within the third-quarter for QTL income, saying that it was associated to “the timing of purchases by a modem-only handset customer.” Qualcomm not often discusses its enterprise with Apple, and did not title the corporate, however Apple does buy modems from the corporate for its iPhones and different gadgets.
Qualcomm’s automotive enterprise, which incorporates chips and software program for vehicles, remains to be small, though it confirmed 20% progress in the course of the quarter to $447 million in income. It’s reported as a part of QTL.
Qualcomm’s licensing section, QTL, which sells entry to applied sciences wanted for mobile service, reported an 18% annual lower in income to $1.29 billion.
Qualcomm stated it made $900 million in share repurchases and paid $800 million in dividends in the course of the quarter.
Source: www.cnbc.com”