Qualcomm Inc. saw a further decline in its shares during Wednesday’s extended trading session following a disappointing forecast. This came after the chip maker beat earnings expectations.
Share Performance
After hours, Qualcomm shares fell 2%, adding to a 2.1% decline during the regular session. The stock closed at $129.27.
Third-Quarter Expectations
According to analysts surveyed by FactSet, the consensus for third-quarter earnings was $1.81 per share on revenue of $8.51 billion.
Fourth-Quarter Forecast
For the fourth quarter, Qualcomm projected earnings per share ranging from $1.80 to $2.00, with revenue expected to be between $8.1 billion and $8.9 billion. Analysts had estimated earnings of $1.92 per share and revenue of $8.74 billion for the same period.
Third-Quarter Performance
In its fiscal third quarter, Qualcomm reported net income of $1.8 billion, or $1.60 per share, compared to $3.73 billion, or $3.29 per share, in the year-ago period. Adjusted earnings, which exclude certain expenses, came in at $1.87 per share versus $2.96 per share last year.
Total revenue for the third quarter decreased to $8.45 billion from $10.94 billion in the previous year.
Year-to-Date Comparison
Year to date, Qualcomm shares have gained 17.6%, while the PHLX Semiconductor Index has seen a 22% increase. The S&P 500 index and the Nasdaq Composite Index have also performed well, with gains of 17.6% and 46.8% respectively.
In summary, Qualcomm Inc. faced a decline in its shares due to concerns over its lower-than-expected forecast.