Qualcomm Shares Lose Signal: What’s Going On?

Qualcomm Incorporated (NASDAQ:QCOM) shares are trading lower Thursday after the company reported fourth-quarter financial results Wednesday after the market closed and issued first-quarter GAAP earnings per share guidance below estimates.

• Qualcomm stock is showing notable weakness. What’s pressuring QCOM stock?

Qualcomm Beats on Earnings and Revenue as Automotive Revenue Rises 89%

Qualcomm reported fourth-quarter adjusted earnings per share of $2.17, beating the consensus estimate of $2.16. It reported revenue of $10.322 billion, beating the consensus estimate of $10.111 billion.

Chip revenue, known as QCT, was $9.015 billion, down 8% from a year earlier, and licensing revenue, known as QTL, was $1.304 billion, down 7%. Within QCT, handset revenue fell 26% to $5.137 billion, automotive revenue rose 89% to $1.99 billion, and Internet of Things revenue rose 4% to $1.888 billion. Qualcomm described it as a record automotive quarter.

"We are pleased to deliver fourth quarter non-GAAP revenues at the high end of our guidance, along with 36% year-over-year growth in combined QCT Automotive and IoT revenues," said Cristiano Amon, Qualcomm’s CEO.

Qualcomm Renews Apple, Huawei and Transsion Licenses; Announces Amazon Data Center Collaboration

Qualcomm said it renewed long-term QTL license agreements with Apple, Huawei and Transsion. It also announced a multi-generational product collaboration with Amazon for AI data centers. Earlier Wednesday, Qualcomm announced a deal with SpaceX, the parent of Starlink, to provide base station technology for Starlink Mobile.

Qualcomm Guides Q1 GAAP Earnings per Share Well Below Estimates

For the first quarter, Qualcomm guided to GAAP earnings per share of $1.03 to $1.23, versus the consensus estimate of $1.67. It expects adjusted earnings per share of $2.15 to $2.35, versus the consensus estimate of $2.27, and revenue of $10.40 billion to $11.20 billion, versus the consensus estimate of $10.476 billion.

By segment, it expects QCT revenue of $9.0 billion to $9.6 billion and QTL revenue of $1.3 billion to $1.5 billion. Amon said fiscal 2027 marks the start of its non-handset revenue inflection, with non-handset revenue projected to grow more than 60% and a data center revenue target of $5 billion reiterated.

Qualcomm Shares Fall

QCOM Price Action: At the time of publication, Qualcomm shares are trading 9.89% lower at $156.06, according to data from Benzinga Pro.

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