Qualcomm issues weaker-than-expected profit forecast — CNBC
Qualcomm reported quarterly results that exceeded market expectations for revenue and adjusted earnings per share, but its forecast for the current quarter was weaker than analysts expected. This was reported by CNBC.
Qualcomm’s adjusted earnings per share were $2.17, compared with expectations of $2.16, while revenue was $10.32 billion versus the LSEG consensus forecast of $10.11 billion. At the same time, the company forecasts adjusted earnings of between $2.15 and $2.35 per share and revenue of $10.4 billion to $11.2 billion in the current quarter. Analysts expected earnings per share of $2.27 and revenue of $10.48 billion.
Smartphone chip sales declined
Qualcomm’s total quarterly revenue fell 8% year over year. Smartphone chip sales declined 26% to $5.14 billion, also below StreetAccount’s estimate of $5.21 billion. The company raised prices in September, but rising memory costs are forcing smartphone manufacturers to increase device prices, putting pressure on demand.
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Qualcomm said it sees sequential growth in the smartphone chip segment, while shipments of Android devices in China, in its assessment, have reached their lowest level. At the same time, the company forecasts that the smartphone market will remain without significant growth in 2027.
Betting on data centers and the automotive sector
Qualcomm CEO Cristiano Amon said the company’s revenue from data center solutions amounted to $650 million during the quarter, mainly due to product adaptation and connectivity work. The company expects to generate $5 billion in revenue from this area in fiscal 2027. According to Amon, demand exists in the segment, but the company is constrained by supply.
Revenue at Qualcomm’s automotive division rose 89% year over year to $1.99 billion, exceeding StreetAccount’s expectation of $1.66 billion. Revenue from the internet of things segment increased 4% to $1.88 billion, while the QTL licensing division reduced revenue by 7% to $1.3 billion. Qualcomm also reported renewing licensing agreements with Apple, Huawei and Transsion.
