By Dhirendra Tripathi
Investing.com – Qualcomm stock (NASDAQ:QCOM) fell 3% Thursday as supply chain constraints and a focus on mobile chipsets kept it behind projections in other key categories in its most recent earnings report.
The overall weakness in tech stocks, led by the 24% drop in Meta Platforms (NASDAQ:FB), also put pressure on the stock. The Nasdaq Composite NASDAQ Composite was down 1.8% after Meta recorded the first fall in its user base in December quarter its 18-year history.
In the so-called RF front-end market -- chips that help convert radio signals into data and voice -- revenue was 7% higher at $1.1 billion, short of $1.3 billion estimates, according to Bloomberg. Sales of automotive chips were 21% higher at $256 million, compared with an estimate of $277 million.
The company prioritized sales to manufacturers in China as it tried to capture a larger share of the market for smartphone chips, an opportunity arising out of Huawei’s exit.
Sales of phone chips climbed 42%, while revenue from automotive chips was up 21%.
Adjusted net profit in the first quarter rose 47% to $3.7 billion, or $3.23 per share. Revenue jumped 30% to $10.7 billion. Both income and revenue beat estimates.
Qualcomm expects current-quarter revenue to rise by a third from a year ago to hit $10.6 billion at midpoint of its guidance range. However, revenue from its license and patent portfolio could fall year-on-year, according to the company’s projections.
Adjusted profit per share is seen at $2.9 at center of its guidance range, up from $1.9 from a year ago.