By Sam Boughedda
Shares of Qualcomm (NASDAQ:) tumbled in extended trading on Wednesday after the company posted earnings for its latest quarter, missing earnings expectations.
The semiconductor fiscal Q4 earnings of $3.13 per share, $0.02 worse than the analyst estimate of $3.15, with revenue for the quarter coming in at $11.39 billion versus the consensus estimate of $11.35 billion.
Qualcomm shares are currently down over 8% after-hours, following a 4% decline in the regular session.
“We are pleased to report another strong year, despite the macroeconomic challenges, as we continue to execute our strategy of transforming Qualcomm from a wireless communications company for the mobile industry to a connected processor company for the intelligent edge,” said Cristiano Amon, President and CEO of Qualcomm Incorporated.
The company’s guidance also missed forecasts, with Qualcomm expecting fiscal Q1 2023 earnings of $2.25 to $2.45 per share, versus the consensus of $3.42, while revenue for the period is seen between $9.2 billion and $10 billion, versus the consensus of $12 billion.
The company said its financial outlook is being temporarily impacted by elevated channel inventory and it projects 3G/4G/5G handset volumes in calendar 2022 to decline by low-double digits year-over-year.
“As we communicated at our last earnings call, we had started to see a deceleration in demand in mass tier handsets and consumer IoT. Since then, the further deterioration of the macroeconomic environment and sustained COVID restrictions in China have led to broad-based demand weakening across tiers and regions,” the company stated.
However, for Apple (NASDAQ:) product revenues, Qualcomm now expects to have the vast majority of share of 5G modems for the 2023 iPhone launch, up from its previous 20% assumption.
Story Credit: investing.com