Qualcomm Inc stock fell after the wireless-chip giant reported second-quarter earnings for the fiscal year 2023 that were in line with Wall Street estimates but offered a light forecast.
Investors also digested a surprise weakness in sales to Apple Inc (NASDAQ:AAPL) for its iPhone and margin lows not seen in nearly three years, according to MarketWatch.
For the period ended March 31, 2023, the San Diego, California-based semiconductor and wireless technology company reported earnings of $2.15 per share on revenue of $9.3 billion. The consensus earnings estimate was $2.15 per share on revenue of $9.1 billion.
Qualcomm revenue fell 16.9% during the quarter, compared to the same period a year as sales from handset chips, a core business for the company, declined 17% from a year earlier.
The company said it expects third-quarter non-GAAP earnings of $1.70 to $1.90 per share on revenue of $8.10 billion to $8.90 billion. This iw well below the consensus earnings expectations of $2.18 per share on revenue of $9.17 billion for the quarter ending June 30, 2023.
Qualcomm stock fell over 6% to $106.01 on the Nasdaq in afternoon trade.
The company's diversification is working but is not significant enough to mitigate Qualcomm's headwinds in the smartphone segment.
In a note seen by Market Watch, TD Cowen analyst Matthew Ramsay said that while he had forecast a miss for the June-ending quarter outlook, Apple’s iPhone modem inventory build/burn was a “surprise,” following “component pull-ins earlier in the year.”
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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