Qualcomm President and CEO Cristiano Amon speaks at the Milken Institute Global Conference on May 2, 2022 in Beverly Hills, California.
Patrick T. Fallon | AFP | Getty Images
Qualcomm Shares fell 7% in extended trading after the chipmaker reported an in-line tax on Wednesday fourth quarter earnings but offered weak guidance for the first quarter.
How the company did:
- Earnings: $3.13 per share, adjusted, versus $3.13 per share, according to Refinitiv, as analysts expected.
- Income: $11.39 billion, adjusted, vs. $11.37 billion, in line with analysts’ expectations, according to Refinitiv.
Total revenue rose 22% year-on-year in the quarter ended in September. 25, according to the statement.
As for guidance, Qualcomm called for fiscal first-quarter earnings of $2.25 to $2.45 per share on revenue of $9.2 billion to $10 billion. Analysts polled by Refinitiv had expected earnings of $3.42 per share and revenue of $12.02 billion.
“Given the uncertainty created by the macroeconomic environment, we are revising our guidance for calendar year 2022 to a mid-single-digit percentage decline in 3G/4G/5G phone volumes year-over-year to a low double-digit percentage decline. “Qualcomm said in a report.
“Rapidly deteriorating demand and easing supply constraints in the semiconductor industry have resulted in an increase in channel inventory.”
Qualcomm CDMA Technologies, or QCT, which includes smartphone chips, radio-frequency front-end components, automotive chips and Internet of Things devices, had revenue of $9.9 billion. That’s up 28% and above the $9.87 billion consensus among analysts polled by StreetAccount.
In the QCT segment, mobile phone revenue rose 40% to $6.57 billion, falling short of the StreetAccount consensus of $6.59 billion. Automotive chips grew 58% year-over-year to $427 million. Qualcomm’s IoT business, which makes low-power chips for connected devices, grew 24% to $1.92 billion. RF front-end chips fell 20% to $992 million.
Qualcomm Technology Licensing, or QTL, the other major Qualcomm division, which consists of a consensus of license fees associated with G and other technologies companies, had revenue of $1.44 billion, up 8% but below StreetAccount’s $1.8 billion .
In a call with investors on Wednesday, CEO Cristiano Amon said the semiconductor industry is facing macroeconomic headwinds “to which we are not immune.” He added that the company has already frozen hiring and is prepared to further reduce operating costs if necessary.
“We are in a strong position to manage near-term headwinds,” Amon said.
Qualcomm during the quarter he said He extended the patent license agreement with Samsung until 2030. Arm, which provides the chip architecture used by Qualcomm, filed a lawsuit v. Qualcomm for breach of license agreements and trademark infringement.
Despite the after-hours action, Qualcomm shares are down 37% so far this year, while the broader S&P 500 is down 20% over the same period.
Executives will discuss the results with analysts on a conference call beginning at 4:45 PM ET.
This is the latest news. Please check for updates.
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Correction: Updated to reflect Qualcomm’s phone revenue of $6.57 billion. The previous version was rounded up to $6.6 billion.
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