Qualcomm (QCOM) Earnings Report for the Second Quarter of 2023

Cristiano Amon, President and CEO of Qualcomm, speaks through the Milken Institute World Convention on Might 2, 2022, in Beverly Hills, California.

Patrick T Fallon | AFP | Getty Photographs

Qualcomm talked about second quarter earnings On Wednesday that was consistent with analyst expectations however noticed gross sales of telephone chips, a core enterprise for the corporate, fall 17% 12 months over 12 months.

Qualcomm shares fell greater than 2% in prolonged buying and selling.

Right here’s how the chipmaker carried out towards Refinitiv’s consensus rankings:

  • EPS: $2.15 a share, adjusted, versus an expectation of $2.15 a share
  • he gained: $9.27 billion, in comparison with expectations of $9.1 billion

Within the quarter ending in March, Qualcomm stated web earnings fell 42% to $1.70 billion, or $1.52 per share, from $2.93 billion, or $2.57 per share, a 12 months earlier.

Qualcomm stated it expects gross sales of $8.5 billion within the present quarter, which fell in need of Wall Road’s forecast of $9.14 billion. Analysts had anticipated earnings steering for the present quarter at $2.16 per share, however Qualcomm stated it expects it to be round $1.80.

Qualcomm CEO Cristiano Amon, in an announcement, blamed the outcomes on a difficult setting, and the corporate stated it had seen no proof of a restoration in smartphone gross sales in China. The smartphone market is wanting ahead to a troublesome 2023, as shipments to the worldwide market fell by greater than 14% within the first quarter, Based on IDC.

“The evolving macroeconomic backdrop has led to an additional deterioration in demand, significantly in cellphones, of a better magnitude than we beforehand anticipated,” Qualcomm CEO Cristiano Amon stated on a name with analysts.

Qualcomm’s chip section, referred to as QCT, sells smartphone processors, automotive chips and different elements to superior electronics. Its income fell 17% to $7.94 billion through the quarter.

The majority of QCT’s gross sales come from telephone chips, that are the processors on the coronary heart of most Android telephones. Qualcomm reported $6.11 billion in telephone gross sales, down 17% from a 12 months in the past.

Qualcomm stated it expects a bigger than normal decline within the third quarter for QTL income, saying that was associated to the “timing of the acquisition by the modem-only telephone buyer.” Qualcomm hardly ever discusses its enterprise with Apple, and didn’t identify the corporate, however Apple buys modems from the corporate for iPhones and different gadgets.

Qualcomm’s automotive enterprise, which incorporates chips and software program for vehicles, stays small, though it confirmed 20% development for the quarter to $447 million in income. Reported as a part of a QTL.

Qualcomm’s licensing section, QTL, which sells entry to applied sciences wanted for mobile service, reported an 18% annual decline in income to $1.29 billion.

Qualcomm stated it generated $900 million in share buybacks and paid $800 million in dividends through the quarter.