March 3, 2026
Qualcomm’s stock loss accelerates after hours as revenue growth is tied to smartphone and China recovery

Qualcomm’s stock loss accelerates after hours as revenue growth is tied to smartphone and China recovery

Qualcomm’s stock loss accelerates after hours as revenue growth is tied to smartphone and China recovery – MarketWatch

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Earnings Results

Last Updated: Aug. 2, 2023 at 8:37 p.m. ET First Published: Aug. 2, 2023 at 4:20 p.m. ET

Qualcomm shares drop during the conference call with analysts Wednesday

Qualcomm’s 5G exhibit at CES 2019 in Las Vegas.

AFP via Getty Images

[]Qualcomm Inc. shares fell further in Wednesday’s extended session as the chip maker’s forecast was on the low side of Wall Street estimates following an earnings beat.

[]Qualcomm QCOM, -2.13% shares, which had been down 2% after hours following the release of results, dropped 7% during the conference call with analysts, as Chief Financial Officer Akash Palkhiwala told analysts that revenue growth will depend upon a recovery in handsets, or phone sales, and a recovery in China, both of which have yet to materialize. The stock closed down 2.1% at $129.27 in the regular session.

[]On the call, Palkhiwala told analysts the company expects fiscal fourth-quarter sales of CDMA technologies, or QCT, of $6.9 billion to $7.5 billion. QCT includes handset and radio-frequency, or RF, chips as well as chips for cars and the Internet of Things. Analysts had forecast QCT sales of $7.45 billion. For the third quarter, Qualcomm reported handset revenue of $5.26 billion, a 15% drop from a year ago, while analysts had forecast $5.31 billion.

[]The company also forecast sales of Qualcomm’s technology licensing, or QTL, of $1.15 billion to $1.35 billion on a slight sequential increase in handset sales. Analysts had forecast $1.26 billion.

[]Palkhiwala told analysts that the company’s fourth-quarter earnings forecast of $1.80 to $2 a share, on revenue of $8.1 billion to $8.9 billion, included expected handset growth in the holiday season. Meanwhile, Wall Street estimated $1.92 a share for the fourth quarter along with revenue of $8.74 billion.

[]“As we approach fiscal 2024, our revenue growth will largely depend on the macroeconomic environment, global handset units and China recovery,” Palkhiwala said.

[]“We continue to estimate that calendar 2023 handset units will be down at least a high-single-digit percentage relative to calendar 2022, reflecting the macro environment and a slower recovery in China,” the CFO told analysts, adding that the forecast includes anticipated holiday sales for handsets.

[]The company reported fiscal third-quarter net income of $1.8 billion, or $1.60 a share, compared with $3.73 billion, or $3.29 a share, in the year-ago period. The chip maker reported adjusted earnings, which exclude stock-based compensation expenses and other items, of $1.87 a share, compared with $2.96 a share in the year-ago period.

[]Total revenue for the third quarter fell to $8.45 billion from $10.94 billion in the year-ago period. Analysts surveyed by FactSet forecast third-quarter earnings of $1.81 a share on revenue of $8.51 billion.

[]Qualcomm reported QCT revenue of $7.17 billion and QTL revenue of $1.23 billion, while analysts had forecast $7.23 billion and $1.25 billion, respectively.

[]Year to date, Qualcomm shares are up 17.6%, compared with a 22% gain by the PHLX Semiconductor Index SOX, -3.80%, a 17.6% gain by the S&P 500 SPX, -1.38% and a 46.8% gain by the tech-heavy Nasdaq Composite Index COMP, -2.17%.

Barron’s: Tupperware Stock Has Risen 700% in 2 Weeks. It Could Come Crashing Down After Earnings.

[]Tupperware is the latest meme stock, and retail traders have pushed it higher in recent weeks despite concerns over the future of the business.

[]Wallace Witkowski came to MarketWatch from the Associated Press in New York, where he covered the business of Big Pharma, after covering FDA regulation of many of the same companies, as well as medical devices, in the Washington, D.C., area. Based in San Francisco, his current focus is on the more exciting world of semiconductors, videogames and cybersecurity, when he’s not churning out earnings coverage. Follow him on Twitter at: @wmwitkowski.

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