A drop in profit and lower revenues are expected from San Diego, California-based chipmaker QUALCOMM, Inc. (NASDAQ:QCOM) when it reports its fourth quarter and full-year fiscal 2023 financial results on Wednesday, November 1.
A slowdown in the sale of smartphones and other devices that require chips as economic uncertainty has seen curbed consumer spending is expected to drag on Qualcomm’s quarterly and full-year performance.
For 4Q, the iPhone supplier expects adjusted earnings per share (EPS) in the range of $1.80 to $2, compared to EPS of $3.13 in the year-ago quarter.
Revenue is expected in the range of $8.1 to $8.9 billion, down from $11.4 billion for the same period last year.
The company’s 4Q guidance midpoint accounts for the continued impact of macroeconomic headwinds, weaker global handset units, and channel inventory drawdown, Qualcomm noted.
Wall Street analysts have similar expectations, calling for EPS of $1.92, representing a 38.7% decline from the same time last year.
They forecast $8.55 billion in revenue, a 25% drop from the year-ago quarter.
For full-year fiscal 2023, the consensus expectation is for Qualcomm to report a 33.6% drop in EPS from $12.53 to $8.32 and a 19.2% decline in revenue from $44.2 billion to $35.7 billion.
Qualcomm shares traded hands modestly higher ahead of its results, up 0.2% at US$109.21 shortly before noon on Wednesday.
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