QCOM Stock: Qualcomm Outlook Misses Views

Wireless-chip leader Qualcomm (QCOM) late Wednesday met expectations for earnings as it beat views for sales in its fiscal second quarter. However, it guided below Wall Street’s targets for the current period. QCOM stock fell in extended trading.

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The San Diego-based company earned an adjusted $2.15 a share on sales of $9.28 billion for the period ended March 26. Analysts polled by FactSet had expected earnings of $2.15 a share on sales of $9.09 billion. On a year-over-year basis, Qualcomm earnings declined 33% while sales dropped 17% as it navigates a slowdown in smartphone sales.

For the current quarter, Qualcomm predicted adjusted earnings of $1.80 a share on sales of $8.5 billion. Wall Street was forecasting earnings of $2.17 a share on sales of $9.13 billion in the June quarter.

Qualcomm said its fiscal third-quarter outlook reflects continued macroeconomic headwinds, weaker global handset units and channel inventory drawdown.

QCOM Stock Sinks After Report

In after-hours trading on the stock market today, QCOM stock dropped 4.4% to 107.90. During the regular session Wednesday, QCOM stock slid 2.8% to close at 112.83.

“As we navigate this challenging environment, we remain focused on the critical factors we can control to emerge stronger from this downturn — our leading technology roadmap, best-in-class product portfolio, strong customer relationships and operational efficiencies,” Chief Executive Cristiano Amon said in a news release.

QCOM stock ranks No. 11 out of 36 stocks in IBD’s fabless semiconductor industry group, according to IBD Stock Checkup. Qualcomm has a so-so IBD Composite Rating of 76 out of 99.

Other semiconductor stocks posting quarterly results late Wednesday included Qorvo (QRVO), SiTime (SITM) and Synaptics (SYNA).

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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