Qualcomm shares dive on soft revenue forecast
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The news: Qualcomm shares tanked in extended trading on Wall Street after the semiconductor company delivered a softer-than-expected revenue forecast for the second quarter.
The numbers: The world's largest maker of smartphone processors said Q2 sales will be between USD10.2 billion ($14.6 billion) and USD11 billion, compared to consensus estimates of USD11.2 billion, according to Bloomberg data.
Qualcomm guided Q2 earnings per share to USD2.55, at the midpoint, compared to average forecasts of USD2.89.
First-quarter revenue was up 5% year on year to USD12.3 billion, above estimates of USD12.2 billion. Earnings per share reached USD2.78 compared to forecasts of USD3.41.
Qualcomm shares were down 8.4% to USD148.89 at the start of after-hours trading.
The context: Qualcomm CEO Cristiano Amon said the company's near-term handsets outlook is impacted by "industry-wide memory supply constraints". However, he said he is encouraged by solid demand for premium and high tier smartphones.
