© Reuters. Qualcomm shares fall 2% on steering miss
Qualcomm (NASDAQ:) shares are buying and selling practically 7% decrease following the corporate’s reported FQ2 outcomes.
Whereas of $2.15 was in-line with expectations and income of $9.27 billion (down 17% year-over-year) beat the consensus estimate of $9.09B, Q3 steering missed expectations. QCT section income was down 17% year-over-year to $7.9B, and QTL section income fell 18% to $1.3B.
Demand for smartphones has deteriorated as China stays weak.
“As we navigate this difficult surroundings, we stay targeted on the important elements we are able to management to emerge stronger from this downturn – our main know-how roadmap, best-in-class product portfolio, robust buyer relationships and operational efficiencies,” mentioned CEO Cristiano Amon.
The corporate expects 3Q23 EPS within the vary of $1.70-$1.90, in comparison with the consensus of $2.20, and income within the vary of $8.1-8.9B, in comparison with the consensus of $9.25B.
Mizuho analysts lower the worth goal by $10 to $140 per share.
“We see potential for outperformance with a lowered 5G expectation, any potential China demand rebound, and additional share acquire at Samsung/Android clients,” they mentioned in a be aware.
Deutsche Financial institution analysts additionally lower the worth goal as they went to $130 from the prior $150 per share.
“Whereas QCOM’s information was disappointing by any measure, we commend the co’s extra practical commentary on C2H23 (in contrast with different co’s constructing in a big snapback), and thus imagine the co must be a horny beneficiary of the eventual cyclical rebound as soon as one really happens (not a matter of if, however somewhat when). On decrease estimates, we keep our Purchase score however decrease our P/T,” they wrote.
Extra reporting by Senad Karaahmetovic
