{"id":505882,"date":"2022-11-03T02:20:00","date_gmt":"2022-11-02T23:20:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/earnings-results-qualcomm-stock-drops-more-than-7-after-poor-outlook-months-long-chip-glut\/"},"modified":"2022-11-03T02:20:00","modified_gmt":"2022-11-02T23:20:00","slug":"earnings-results-qualcomm-stock-drops-more-than-7-after-poor-outlook-months-long-chip-glut","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/earnings-results-qualcomm-stock-drops-more-than-7-after-poor-outlook-months-long-chip-glut\/","title":{"rendered":"#Earnings Results: Qualcomm stock drops more than 7% after poor outlook, months-long chip glut"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a4188c998dd6\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a4188c998dd6\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/earnings-results-qualcomm-stock-drops-more-than-7-after-poor-outlook-months-long-chip-glut\/#%E2%80%9CEarnings_Results_Qualcomm_stock_drops_more_than_7_after_poor_outlook_months-long_chip_glut%E2%80%9D\" >&#8220;Earnings Results: Qualcomm stock drops more than 7% after poor outlook, months-long chip glut&#8221;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/earnings-results-qualcomm-stock-drops-more-than-7-after-poor-outlook-months-long-chip-glut\/#At_best_revenue_forecast_misses_current_Street_view_by_only_2_billion\" >At best, revenue forecast misses current Street view by only $2 billion<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/earnings-results-qualcomm-stock-drops-more-than-7-after-poor-outlook-months-long-chip-glut\/#Wallace_Witkowski\" >Wallace Witkowski<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CEarnings_Results_Qualcomm_stock_drops_more_than_7_after_poor_outlook_months-long_chip_glut%E2%80%9D\"><\/span>&#8220;Earnings Results: Qualcomm stock drops more than 7% after poor outlook, months-long chip glut&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"At_best_revenue_forecast_misses_current_Street_view_by_only_2_billion\"><\/span>\n  At best, revenue forecast misses current Street view by only $2 billion<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap crawler\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0001348535\" role=\"document\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0001348535\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Qualcomm Inc. shares fell in the extended session Wednesday following the chip maker\u2019s poor outlook, and estimates of about two months or more of inventory it needs to clear in its core business.<\/p>\n<p> Qualcomm<br \/>\n        QCOM,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/206679220\/composite\" class=\"negative\">-4.12%<\/bg-quote><br \/>\n       shares dropped 7.6% after hours, following a 4.1% decline to close at $112.50 in the regular session. In late July, the San Diego-based chip maker cut its forecast because of weakness in the smartphone market that had yet to creep into the premium handset market. <\/p>\n<div class=\"paywall\">\n       On the call with analysts, Chief Executive Cristiano Amon said the accelerated weak demand was related to \u201cmacro economic headwinds and the prolonged COVID in China,\u201d and \u201cthe rapid deterioration in demand and easing of supply constraints\u201d across the chip industry.\u201d would take out about 80 cents a share in first-quarter earnings.<\/p>\n<p>\u201cIt\u2019s the major factor,\u201d Amon told analysts on the call. \u201cIt\u2019s mostly a handset consumer story.\u201d Earnings for the first quarter, as a results, would take a hit of 80 cents a share, the company said.<\/p>\n<p>Another big factor is that companies are just spending less. Amon said \u201ccompanies across the board had much higher inventory policies, supply chain got resolved, and you got that macro economic uncertainty, you have a drawdown trying to bring inventory to a different level than it was during the situation of demand constraint.\u201d<\/p>\n<p>Qualcomm forecast first-quarter earnings of $3 to $3.30 a share on revenue of $9.2 billion to $10 billion, while the Street estimated $3.43 a share on revenue of $12.02 billion.<\/p>\n<p><strong>Read:<\/strong> Meta spending slams <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Facebook<\/a> stock, but here are the chip stocks that are benefiting<\/p>\n<p>Chief Financial Officer Akash Palkhiwala told analysts there is about eight to 10 weeks of elevated in the channel. In the meantime, Qualcomm was instituting a hiring freeze, and looking into cost-saving measures, execs told analysts.<\/p>\n<p>While handset-chip sales surged 40% to a record $6.57 billion from a year ago, topping the Street\u2019s expectation of $6.55 billion, the company\u2019s forecast indicates a big glut in inventory in Qualcomm\u2019s CDMA Technologies unit, the one that includes handset and RF chips as well as chips for autos and Internet of Things.<\/p>\n<p>Qualcomm expects QCT sales of $7.7 billion to $8.3 billion, and sales from Qualcomm\u2019s <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> licensing, or QTL, segment of $1.45 billion to $1.65 billion. Analysts had forecast forecast $10.42 billion in QCT sales and QTL revenue of $1.71 billion.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>Qualcomm reported fourth-quarter QCT revenue of $9.9 billion, a 28% gain from a year ago. Analysts had estimated $9.84 billion, based on the company\u2019s forecast of $9.5 billion to $10.1 billion.<\/p>\n<p>Fourth-quarter auto-chip sales zoomed up 58% to a record $427 million, and Internet of Things, or IoT, sales rose 24% to a record $1.92 billion. The Street was expecting auto sales of $362.4 million, and IoT sales of $1.82 billion.<\/p>\n<p>Revenue from the QTL segment fell 8% to $1.44 billion compared with Wall Street estimates of $1.58 billion, based on a company forecast of $1.45 billion to $1.65 billion.<\/p>\n<p><strong>Read about:<\/strong> Intel\u2019s quarterly results, AMD\u2019s quarterly results<\/p>\n<p>The company reported fiscal fourth-quarter net income of $2.87 billion, or $2.54 a share, compared with $2.8 billion, or $2.45 a share, in the year-ago period. The chip maker reported adjusted earnings, which exclude stock-based compensation expenses and other items, of $3.13 a share, compared with $2.55 a share in the year-ago period. Total revenue for the third quarter rose to $11.4 billion from $9.34 billion in the year-ago period.<\/p>\n<p>Analysts had estimated earnings of $3.13 a share on revenue of $11.32 billion, based on Qualcomm\u2019s forecast of  $3 to $3.30 a share on revenue of $11 billion to $11.8 billion.<\/p>\n<p>Year to date, Qualcomm shares are down 38%, compared with a 41% decline for the PHLX Semiconductor Index\u00a0<br \/>\n        SOX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210598361\/realtime\" class=\"negative\">-3.09%<\/bg-quote><span>,<\/span><br \/>\n      \u00a0a 21% decline by the S&amp;P 500 index\u00a0<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"negative\">-2.50%<\/bg-quote><br \/>\n      \u00a0and a  33% drop by the tech-heavy Nasdaq Composite Index\u00a0<br \/>\n        COMP,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210598365\/realtime\" class=\"negative\">-3.36%<\/bg-quote><span>.<\/span>\n      <\/p>\n<p>Shares of Advanced Micro Devices Inc.<br \/>\n        AMD,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/208144392\/composite\" class=\"negative\">-1.73%<\/bg-quote><br \/>\n       outperformed the broader market Wednesday after the chip maker said it would clear excess inventory by the end of the year, and forecast that data-center and embedded product sales would continue to rise.<\/p>\n<\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Wallace Witkowski\",\"subhead\":\"The Wall Street Journal\",\"list\":[{\"type\":\"link\",\"icon\":\"bio\",\"url\":\"https:\/\/www.marketwatch.com\/topics\/journalists\/wallace-witkowski\",\"text\":\"Biography\"},{\"type\":\"link\",\"icon\":\"twitter\",\"url\":\"https:\/\/twitter.com\/wmwitkowski\",\"text\":\"@wmwitkowski\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"http:\/\/www.marketwatch.com\/news\/mailto:wwitkowski@marketwatch.com\",\"text\":\"wwitkowski@marketwatch.com\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Wallace_Witkowski\"><\/span>Wallace Witkowski<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><ufc-follow-author-widget product=\"marketwatch\" author-id=\"202_MW\" author-name=\"Wallace Witkowski\" signin-url=\"https:\/\/accounts.marketwatch.com\/login?target=https%3A%2F%2Fwww.marketwatch.com%2Fstory%2Fqualcomm-stock-drops-as-outlook-falls-short-of-expectations-11667419981%3Frss%3D1%26siteid%3Drss\" panda-api=\"https:\/\/follow-api.marketwatch.com\"><\/ufc-follow-author-widget><\/p><\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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