Qualcomm Inc (NASDAQ:QCOM, ETR:QCI) shares fell almost 8% in early trade on Thursday as weak guidance drew focus from better-than-expected results for the fiscal second quarter.
The company projected fiscal third quarter revenue between $9.9 billion and $10.7 billion, at the midpoint of $10.3 billion below Wall Street estimates of $10.34 billion.
It expects earnings per share between $2.60 and $2.80 at the midpoint of $2.70 slightly above estimates of $2.66 to $2.67.
On the company’s earnings call, Qualcomm’s finance chief Akash Palkhiwala explained that the Q3 guidance reflects Qualcomm's “current assessment of financial impact from tariffs,” referring to concerns about potential new US-China tariffs and their impact on the company’s supply chain and customer demand.
For the March quarter, fiscal Q1, Qualcomm posted a 15% year-over-year increase in revenue to $10.84 billion, beating estimates of $10.64 billion.
QCT (chip business) revenue increased by 18% to $9.47 billion. Combined, Automotive and IoT revenues grew by 38% year-over-year.
Earnings per share of $2.85 surpassed estimates of $2.81.
"We are pleased to report another quarter of strong results,” Qualcomm CEO Cristiano Amon said in a statement.
“As we navigate the current macroeconomic and trade environment, we remain focused on the critical factors we can control – our leading technology roadmap, best-in-class product portfolio, strong customer relationships and operational efficiencies.”
Qualcomm shares traded down 7.9% at about $137 shortly after US markets opened on Thursday.