For the three months ending March, Qualcomm earnings surpassed analysts’ estimates. Revenue however fell behind expectations.
The semiconductor giant’s non-GAAP earnings for the quarter came in at 77 cents per share, higher than Wall Street estimates of 71 cents per share.
Total revenue came in at $4.9 billion for the quarter, which is -5.8% lower from the prior year quarter.
Looking ahead, Qualcomm forecasts earnings between 70 cents and 80 cents per share for the current quarter, thereby trailing behind Wall Street's expectation of $1.29 per share.
The company forecasts revenue of $4.7 billion to $5.5 billion for the current quarter, compared to the $5.3 billion mid-point prediction by analysts (based on Refinitiv). Apparently, softening smartphone demand from economic weakness in China has weighed on its revenue guidance.
Qualcomm’s years-long patent dispute with Apple seemed to arrive at a resolution last month, leading the semiconductor company to expect a one-time benefit of $4.5 billion and $4.7 billion. The latest agreement between the two companies includes a six-year global patent license agreement and a multi-year chipset supply agreement.
CEO Steve Mollenkopf indicated that the expected proliferation of 5G network should spell opportunity for Qualcomm, as faster internet speed could spur upgrades in smartphone handsets.