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Qualcomm inventory has fallen about 13% over the previous 12 months.
Bing Guan/Bloomberg
Qualcomm supplied a income forecast for the September quarter beneath expectations on Wednesday, sending its inventory decrease in after-hours buying and selling.
The maker of cellular processors and 5G wi-fi chipsets blamed a slower restoration in China and a difficult macro surroundings for the disappointing outcomes.
For the June quarter, Qualcomm (ticker: QCOM) reported adjusted earnings per share of $1.87, in contrast with Wall Road’s consensus estimate of $1.81, in accordance with FactSet. Income got here in at $8.4 billion, which was beneath analysts’ expectations of $8.5 billion.
The unhealthy information was the steering. Qualcomm gave a income forecast for the present quarter, ending in September, of $8.1 billion to $8.9 billion—which was beneath the consensus of $8.7 billion on the midpoint of the vary.
Qualcomm shares fell 7% in after-hours buying and selling Wednesday following the discharge.
World smartphone demand has been delicate. Final week, analysis agency Canalys mentioned second-quarter worldwide shipments for the cell phones fell 10% year-over-year.
Taiwan Semiconductor Manufacturing
(TSM) additionally mentioned final month the smartphone market had deteriorated over the previous three months.
As a big provider for the cellular market it’s troublesome for Qualcomm to beat any basic market weak spot.
On a convention name with buyers and analysts, Qualcomm executives mentioned they don’t see an instantaneous rebound in demand. Because of this, they plan to implement extra cost-cutting actions through the first half of the corporate’s fiscal 2024 given the market uncertainty.
Qualcomm shares have declined about 12% over the previous 12 months, in contrast with the 26% rise of the
iShares Semiconductor
exchange-traded fund (SOXX), which tracks the ICE Semiconductor Index.
Write to Tae Kim at tae.kim@barrons.com
