Qualcomm Reports Missed Earnings Estimate and Weak Profit Outlook
Qualcomm shares fell about 3% after the chipmaker reported third-quarter earnings slightly below expectations and issued a weaker-than-expected profit outlook for the next quarter. While revenue exceeded analyst estimates, it declined year-over-year by 4%. Both GAAP and non-GAAP net income dropped significantly compared to last year. The company's QCT segment saw a 5% decline in revenue, while its licensing division also reported lower earnings. Qualcomm noted growth in automotive and IoT segments but highlighted ongoing challenges with supply chain costs affecting margins. For the next quarter, it guided for adjusted EPS below analyst expectations due to rising input costs across manufacturing processes. Qualcomm is adjusting pricing strategies to offset these higher expenses, aiming to stabilize gross margins over time.
Tickers: $QCOM
Topics: Earnings Profit Outlook Stock Performance