Cristiano Amon, president and CEO of Qualcomm Incorporated, speaks throughout an interview with CNBC on the ground of the New York Stock Exchange (NYSE) in New York, April 28, 2022.
Brendan McDermid | Reuters
Shares of chipmaker Qualcomm fell greater than 8% Thursday, a day after the corporate reported weak first-quarter steering and stated it began a hiring freeze within the present quarter.
Qualcomm reported fourth-quarter earnings that had been in step with analyst estimates of $3.13 per share on an adjusted foundation and a small income beat of an adjusted $11.39 billion in comparison with the $11.37 billion analysts anticipated, in line with Refinitiv.
But the corporate referred to as for fiscal first-quarter adjusted earnings of $2.25 to $2.45 per share on $9.2 billion to $10 billion in income. Analysts polled by Refinitiv had anticipated earnings per share of $3.42 and income of $12.02 billion.
“The rapid deterioration in demand and easing of supply constraints across the semiconductor industry have resulted in elevated channel inventory,” the corporate stated within the report.
CEO Cristiano Amon burdened on the corporate’s earnings name that the corporate is a “temporary cyclical inventory drawdown.”
In notes to shoppers after the report, a number of analysts appeared to agree that Qualcomm would make it to the opposite facet of the headwinds in a stable place.
“Despite the cyclical slowdown, we believe Qualcomm management is executing on its diversification growth strategy, and we anticipate Qualcomm is likely to post healthy growth trends once the inventory correction is complete,” Canaccord Genuity analysts wrote, sustaining a purchase score on the inventory and reducing its worth goal from $225 to $165.
Piper Sandler analysts maintained an chubby score however minimize their worth goal from $185 to $145, saying they “see the drawdowns as limited to the December and March quarters.”
KeyBanc Capital Markets analysts additionally maintained an chubby score however minimize their worth goal from $170 to $150, saying they view Qualcomm’s outcomes as “disappointing,” however “see favorable risk/reward with forward ests derisked.”
-CNBC’s Ashley Capoot and Jordan Novet contributed to this report.
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