Qualcomm’s revenue comes in weaker than expected in fiscal Q1

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Feb 3, 2021
  • Qualcomm’s revenue comes in weaker than expected in fiscal Q1.
  • The American multinational's earnings tops analysts' estimates.
  • Qualcomm names Cristiano Amon as its next Chief Executive Officer.

Qualcomm Inc. (NASDAQ: QCOM) said on Wednesday that its revenue came in weaker than expected in the fiscal first quarter. Earnings, it added, topped analysts’ estimates in Q1.

Qualcomm shares lost close to 7% in extended trading on Wednesday. Including the price action, the stock is now trading at £110 per share versus a low of £45 per share in March 2020 when the COVID-19 crisis weighed on its business – a good news for the value investors.

Qualcomm’s Q1 financial results versus analysts’ estimates

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Qualcomm said that its net income in the first quarter printed at £1.80 billion that translates to £1.55 per share. In the comparable quarter of last year, its net income was capped at a lower £678 million or 58.64 pence per share.

On an adjusted basis, the American multinational earned £1.59 per share versus the year-ago figure of 72.56 pence per share. Qualcomm generated £6.04 billion of revenue in Q1 as compared to £3.72 billion in the same quarter last year.

According to FactSet, experts had forecast the company to record £6.06 billion of revenue in the recent quarter. Their estimate for adjusted per-share earnings stood at a lower £1.54 per share. In separate news from the United States, payments giant PayPal also published its quarterly earnings report on Wednesday.

CEO Steve Mollenkopf commented on the earnings report on Wednesday and said:

“We delivered an exceptional quarter, more than doubling earnings year over year due to strong 5G demand in handsets and growth in our RF front-end, automotive and IoT adjacencies, which drove record earnings in our chip business.”

Qualcomm names Cristiano Amon as its next CEO

Mollenkopf is set to step down as the company’s CEO later this year. Qualcomm has already named Cristiano Amon as its next Chief Executive Officer who is scheduled to take the helm on 30th June.

For the fiscal second quarter, Qualcomm forecasts its adjusted EPS to fall in the range of £1.14 to £1.28. Its estimate for revenue stands at up to £5.86 billion. In comparison, analysts are calling for £5.21 billion of revenue for the San Diego-based firm in Q2 and £1.16 of adjusted earnings per share.

Qualcomm performed largely upbeat in the stock market last year with an annual gain of roughly 75%. At the time of writing, it is valued at £134.54 billion and has a price to earnings ratio of 35.88.

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