The chip giant exceeded expectations with its latest quarterly results, yet its stock slid 3.4% in after-hours trading to $153.80. Qualcomm reported adjusted earnings of $2.77 per share, surpassing analyst projections of $2.71, while revenue reached $10.37 billion, slightly above the anticipated $10.34 billion. This represents a year-over-year growth exceeding 10%, demonstrating the company’s operational strength in challenging market conditions. More impressive is the longer-term picture, with earnings per share surging nearly 30% year-over-year from $1.88 to $2.43, underscoring the company’s ongoing recovery trajectory.
Cautious Outlook Dampens Investor Enthusiasm
Despite solid numbers, the market’s response appears driven by Qualcomm’s forward guidance. Management forecasted next-quarter earnings between $2.75 and $2.95 per share, with revenue projected in a wide range of $10.3 to $11.1 billion. This broad spectrum may signal uncertainty to investors seeking clearer growth indicators. For long-term investors, however, the current price weakness following strong fundamental performance might present an opportunity, with future quarters potentially delivering results that exceed these conservative projections.
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