Qualcomm Earnings Disappoint

Qualcomm reported weaker-than-expected quarterly revenue and provided lower guidance due to declining sales for smartphone chips. While Qualcomm's third-quarter earnings beat expectations on adjusted earnings per share, $1.87 versus the $1.81 consensus estimate, the company's revenue fell short of expectations at $8.44 billion adjusted compared to an analyst consensus estimate of $8.5 billion. The company's guidance for the upcoming quarter was also lower than anticipated, with earnings expected to range from $1.8 to $2 per share on sales between $8.1 billion and $8.9 billion. This weaker performance was mainly attributed to a 25% year-over-year decline in handset chip sales, amounting to $5.26 billion. Consequently, Deutsche Bank analyst Ross Seymore downgraded Qualcomm to a hold and reduced the price target from $130 to $120, expressing concerns about the company's growth potential.