Qualcomm shares declined after the company issued second-quarter revenue and profit guidance below Wall Street estimates. The company reported first-quarter revenue of $12.25 billion, beating consensus forecasts on both revenue and adjusted earnings per share. However, the weak forward guidance drove the stock decline. CEO Cristiano Amon attributed the entire forecast miss to a global memory chip shortage impacting Qualcomm's smartphone customers, particularly those in China, as they adjust inventory levels. The memory shortage is constraining smartphone manufacturers' ability to secure memory allocations needed to ship complete products, resulting in reduced orders for Qualcomm's chips. Both Qualcomm and other semiconductor companies like Arm Holdings reported disappointing results due to the memory crunch affecting handset revenue and phone manufacturer production plans.
Read full analysisQualcomm shares declined after the company issued second-quarter revenue and profit guidance below Wall Street estimates. The company reported first-quarter revenue of $12.25 billion, beating consensus forecasts on both revenue and adjusted earnings per share. However, the weak forward guidance drove the stock decline. CEO Cristiano Amon attributed the entire forecast miss to a global memory chip shortage impacting Qualcomm's smartphone customers, particularly those in China, as they adjust inventory levels. The memory shortage is constraining smartphone manufacturers' ability to secure memory allocations needed to ship complete products, resulting in reduced orders for Qualcomm's chips. Both Qualcomm and other semiconductor companies like Arm Holdings reported disappointing results due to the memory crunch affecting handset revenue and phone manufacturer production plans.
Qualcomm Inc (QCOM) is a publicly traded company in the Semiconductors sector.