Shulou(Shulou.com)11/24 Report--

CTOnews.com February 3 news, Qualcomm just announced the second quarter revenue and profit expectations are lower than Wall Street expectations, causing its stock after-hours trading from up to down. Qualcomm said it is struggling with the dual impact of weak smartphone demand and oversupply.

Maribel Lopez, technology analyst at Lopez Research, said:"Discussions with mobile service providers indicate continued weakness in global smartphone demand and that weakness is deepening, which does not bode well for Qualcomm. "

However, while inflation and macroeconomic uncertainty have reduced demand for consumer electronics, Qualcomm's performance has not suffered much because it focuses on high-margin markets such as high-end smartphones. The company is also said to be diversifying into new, fast-growing areas such as automobiles.

Revenue fell 12% year-over-year to $9.46 billion in the first quarter, below Wall Street expectations of $9.6 billion. CTOnews.com found that mobile phone revenue, which accounts for the largest share of Qualcomm's total sales, was only $5.75 billion in the first quarter, down 18% from a year earlier and up 40% in the previous quarter.

Global smartphone shipments fell 18.3% in the quarter ended Dec. 31, the biggest quarterly decline on record, according to IDC.

Smartphone chip companies, including Qorvo, an Apple supplier, forecast poor earnings prospects as their customers continue to clear inventory. Cowen analysts expect smartphone shipments to fall 4 percent this year because it will take some time for Chinese demand to recover after the COVID-19 outbreak.

Qualcomm expects adjusted earnings per share to be between $2.05 and $2.25, compared with analysts 'expectations of $2.26.

Qualcomm Earnings Summary (GAAP):

Earnings (Q1):$2.24 billion. That compares with $3.4 billion last year.

Revenue (Q1):$9.46 billion, compared to $10.71 billion last year.

EPS (Q1):$1.98, compared to $2.98 last year. Analyst estimate: $2.34

- Earnings per share guidance for next quarter: $2.05-$2.25; revenue guidance: $8.7-$9.5 billion.

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