In Qualcomm's other end-market segments, auto sales rose 20% to $447 million and Internet-of-Things sales fell 24% to $1.39 billion for the second quarter, the company said. Total revenue for the quarter fell to $9.28 billion from $11.16 billion in the year-ago period.Īnalysts surveyed by FactSet had forecast $2.15 a share on revenue of $9.09 billion, based on Qualcomm's forecast of $2.05 to $2.25 a share on revenue of $8.7 billion to $9.5 billion. The chip maker reported adjusted earnings, which exclude stock-based compensation expenses and other items, of $2.15 a share, compared with $3.21 a share in the year-ago period. The company reported fiscal second-quarter net income of $1.7 billion, or $1.52 a share, compared with $2.93 billion, or $2.57 a share, in the year-ago period. "Additionally, while expectations are for a rebound in China demand in the second half of the calendar year, we have not seen evidence of meaningful recovery and are not incorporating improvements into our planning assumptions." "As a result, we're operating under the assumption that inventory drawdown dynamics remain a significant factor for at least the next couple quarters," Amon told analysts. As its largest business segment, Qualcomm handset sales fell 17% to $6.11 billion from a year ago. Qualcomm's inventory problems go back to last year, when the company's share price fell in November to lows not seen in more than two years after executives said there was up to 10 weeks of inventory in the channel, and forecast a $2 billion shortfall coming off record salesĪ drop in handset demand, however, has extended the time frame of inventory drawdowns considerably past the previously forecast end of June, the company said. Last quarter, Qualcomm said inventory issues would persist into June, and Wall Street pretty much accepted it. Analysts had estimated earnings of $2.17 a share on revenue of $9.13 billion for the third quarter. On the conference call, Qualcomm Chief Executive Cristiano Amon told analysts that the "evolving macroeconomic backdrop has resulted in further demand deterioration, particularly in handsets, at a magnitude greater than we previously forecasted."Įarlier, Qualcomm had forecast adjusted earnings of $1.70 to $1.90 a share on revenue of $8.1 billion to $8.9 billion for the fiscal third quarter. Shares ended the extended trading session down 6.6%. shares fell in the extended session Wednesday after the chip maker said inventory issues will remain past June because of a downturn in handset demand and the company's outlook disappointed.Īfter declining 2.8% to close the regular session $112.83, Qualcomm (QCOM) shares started sliding after the release of the company's results at Wednesday's close, and sank to a deficit of more than 7% after hours by the time the executives' call with analysts ended. Chip maker originally forecast inventory drawdowns to be done by end of June, expects third-quarter earnings between $1.70 to $1.90 a share, when Street expected $2.17
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