• About Us
  • Disclaimer
  • Contact Us
  • Privacy Policy
Tuesday, March 28, 2023
  • Login
  • Business
    • Reviews
    • Startup
  • Lifestyle
    • Celebrity News
    • Travel
    • Food
  • Entertainment
    • Celebrity News
    • Biography
  • Lifestyle
    • Fashion
    • Food
    • Travel
  • Law
  • Automotive
  • Cannabis
  • Tech
    • Gaming
    • Cryptocurrency
No Result
View All Result
Us timenow
Advertisement
  • Business
    • Reviews
    • Startup
  • Lifestyle
    • Celebrity News
    • Travel
    • Food
  • Entertainment
    • Celebrity News
    • Biography
  • Lifestyle
    • Fashion
    • Food
    • Travel
  • Law
  • Automotive
  • Cannabis
  • Tech
    • Gaming
    • Cryptocurrency
No Result
View All Result
Us timenow
No Result
View All Result
Home Business

Qualcomm stock drops more than 7% after poor outlook, months-long chip glut

adriana wills by adriana wills
November 3, 2022
in Business
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter


Qualcomm Inc. shares fell in the extended session Wednesday following the chip maker’s poor outlook, and estimates of about two months or more of inventory it needs to clear in its core business.

Qualcomm
QCOM,
-4.12%

shares dropped 7.6% after hours, following a 4.1% decline to close at $112.50 in the regular session. In late July, the San Diego-based chip maker cut its forecast because of weakness in the smartphone market that had yet to creep into the premium handset market.

On the call with analysts, Chief Executive Cristiano Amon said the accelerated weak demand was related to “macro economic headwinds and the prolonged COVID in China,” and “the rapid deterioration in demand and easing of supply constraints” across the chip industry.” would take out about 80 cents a share in first-quarter earnings.

“It’s the major factor,” Amon told analysts on the call. “It’s mostly a handset consumer story.” Earnings for the first quarter, as a results, would take a hit of 80 cents a share, the company said.

Another big factor is that companies are just spending less. Amon said “companies across the board had much higher inventory policies, supply chain got resolved, and you got that macro economic uncertainty, you have a drawdown trying to bring inventory to a different level than it was during the situation of demand constraint.”

Qualcomm forecast first-quarter earnings of $3 to $3.30 a share on revenue of $9.2 billion to $10 billion, while the Street estimated $3.43 a share on revenue of $12.02 billion.

Read: Meta spending slams Facebook stock, but here are the chip stocks that are benefiting

Chief Financial Officer Akash Palkhiwala told analysts there is about eight to 10 weeks of elevated in the channel. In the meantime, Qualcomm was instituting a hiring freeze, and looking into cost-saving measures, execs told analysts.

While handset-chip sales surged 40% to a record $6.57 billion from a year ago, topping the Street’s expectation of $6.55 billion, the company’s forecast indicates a big glut in inventory in Qualcomm’s CDMA Technologies unit, the one that includes handset and RF chips as well as chips for autos and Internet of Things.

Qualcomm expects QCT sales of $7.7 billion to $8.3 billion, and sales from Qualcomm’s technology licensing, or QTL, segment of $1.45 billion to $1.65 billion. Analysts had forecast forecast $10.42 billion in QCT sales and QTL revenue of $1.71 billion.

Qualcomm reported fourth-quarter QCT revenue of $9.9 billion, a 28% gain from a year ago. Analysts had estimated $9.84 billion, based on the company’s forecast of $9.5 billion to $10.1 billion.

Fourth-quarter auto-chip sales zoomed up 58% to a record $427 million, and Internet of Things, or IoT, sales rose 24% to a record $1.92 billion. The Street was expecting auto sales of $362.4 million, and IoT sales of $1.82 billion.

Revenue from the QTL segment fell 8% to $1.44 billion compared with Wall Street estimates of $1.58 billion, based on a company forecast of $1.45 billion to $1.65 billion.

Read about: Intel’s quarterly results, AMD’s quarterly results

The company reported fiscal fourth-quarter net income of $2.87 billion, or $2.54 a share, compared with $2.8 billion, or $2.45 a share, in the year-ago period. The chip maker reported adjusted earnings, which exclude stock-based compensation expenses and other items, of $3.13 a share, compared with $2.55 a share in the year-ago period. Total revenue for the third quarter rose to $11.4 billion from $9.34 billion in the year-ago period.

Analysts had estimated earnings of $3.13 a share on revenue of $11.32 billion, based on Qualcomm’s forecast of $3 to $3.30 a share on revenue of $11 billion to $11.8 billion.

Year to date, Qualcomm shares are down 38%, compared with a 41% decline for the PHLX Semiconductor Index 
SOX,
-3.09%
,
 a 21% decline by the S&P 500 index 
SPX,
-2.50%

 and a 33% drop by the tech-heavy Nasdaq Composite Index 
COMP,
-3.36%
.

Shares of Advanced Micro Devices Inc.
AMD,
-1.73%

outperformed the broader market Wednesday after the chip maker said it would clear excess inventory by the end of the year, and forecast that data-center and embedded product sales would continue to rise.



Source link

Tags: analysts' commentsAnalysts' Comments/Recommendationsarticle_normalC&E Exclusion FilterC&E Industry News FiltercellCell/Mobile/Smart PhonescomputersComputers/Electronicsconsumer electronicsContent TypescorporateCorporate/Industrial NewsdisruptionsEarningsEarnings ProjectionselectronicsFactiva FiltersFinancial PerformanceHandheld Electronic DevicesIndustrial ElectronicsIndustrial Goodsindustrial newsmobileMobile Communications DevicesPersonal ElectronicsPHLX Semiconductor IndexQCOMQualcomm Inc.recommendationsSemiconductorsshare price movementShare Price Movement/Disruptionssmart phonesSOXTechnologyTelecommunications Equipment
adriana wills

adriana wills

Stay Connected test

  • 23.8k Followers
  • 99 Subscribers
  • Trending
  • Comments
  • Latest

Concerning Gabriel Kuhn and Daniel Patry

August 19, 2022

Emily Ratajkowski Seemingly Comes Out As Bisexual On TikTok: Video – Hollywood Life

October 10, 2022

Kylie Jenner & Kris’ James Corden Interview: Video – Hollywood Life

September 9, 2022

Kate Beckinsale’s Strapless Bikini & Mermaid Tail: Video – Hollywood Life

September 19, 2022

Sofia Carson Defends ‘Purple Hearts’ Amid Viewer Backlash

0

Why were Doritos jacked buffalo ranch discontinued?

0

5 Americans Injured In Jerusalem Bus Shooting

0

AnnaSophia Robb Praises Austin Butler’s ‘Dedicated’ Work in ‘Elvis’

0

Alienware Aurora 2019 – Features Price and Other Details!

March 24, 2023
Bird Nest Ferns

An Easy-to-Follow Guide to Keeping Bird Nest Ferns Healthy

March 24, 2023
twitter scihub indiavan sartorrentfreak

Twitter Scihub Indiavan SartorrentFreak

February 7, 2023

Jokowi Seeks Investors for Indonesia’s Airports to Curb Deficit

January 21, 2023

Recent News

Alienware Aurora 2019 – Features Price and Other Details!

March 24, 2023
Bird Nest Ferns

An Easy-to-Follow Guide to Keeping Bird Nest Ferns Healthy

March 24, 2023
twitter scihub indiavan sartorrentfreak

Twitter Scihub Indiavan SartorrentFreak

February 7, 2023

Jokowi Seeks Investors for Indonesia’s Airports to Curb Deficit

January 21, 2023
Us timenow

If you use the internet, you are aware of this blog. Therefore, USTimenow offers information on global news in the areas of health, fashion, business, media entertainment, TV dramas, and celebrity rumours. This website's goal is to provide Internet-related knowledge for novices.

Follow Us

Browse by Category

  • Biography
  • Business
  • Cannabis
  • Celebrity News
  • Education
  • Entertainment
  • Fashion
  • Food
  • Gadget & Electronics
  • Gaming
  • Guns & Ammunition
  • Health
  • Lifestyle
  • Mobile & Laptops
  • News
  • Reviews
  • Software & Apps
  • Sports
  • Startup
  • Tech
  • Travel
  • Web development

Recent News

Alienware Aurora 2019 – Features Price and Other Details!

March 24, 2023
Bird Nest Ferns

An Easy-to-Follow Guide to Keeping Bird Nest Ferns Healthy

March 24, 2023
No Result
View All Result

© 2023 Ustimenow - Premium WordPress news & magazine theme by Ustimenow.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In