Why Qualcomm Stock Fell as Much as 6.8% Today
Shares of semiconductor giant Qualcomm (NASDAQ: QCOM) plunged on Thursday, falling as much as 6.8%. Analysts and investors were not impressed by the company's third-quarter earnings and Q4 guidance, which were published in tandem on Wednesday evening.
Qualcomm's third-quarter sales rose by 37% year over year to $10.93 billion. Adjusted earnings increased 54%, landing at $2.96 per diluted share. Your average Wall Street analyst would have settled for earnings near $2.87 per share on sales in the neighborhood of $10.87 billion, so Qualcomm exceeded expectations across the board.
However, the company projected fourth-quarter revenue of roughly $11.4 billion, well below the current analyst consensus of $11.87 billion. As a supplier of critical components for smartphones, Qualcomm is experiencing weaker order volumes as its handset-building customers battle soft demand for new phones. Inflation-based budget concerns are everywhere nowadays.
Source Fool.com
