Qualcomm (QCOM) shares dropped 5% in after-hours trading on Wednesday, despite the company reporting better-than-expected third-quarter results. The semiconductor giant's weak fourth-quarter guidance appears to have overshadowed its strong performance in Q3.
For the third quarter, Qualcomm reported adjusted earnings per share of $2.77, surpassing the analyst estimates of $2.71. Revenue came in at $10.37 billion, slightly above the expected $10.35 billion. The company's performance was driven by resilient demand for its mobile chips and expanding opportunities in automotive and Internet of Things (IoT) sectors.
However, investors seemed more focused on Qualcomm's fourth-quarter outlook. The company forecasts Q4 adjusted EPS between $2.75 and $2.95 on revenue of $10.3 billion to $11.1 billion. This guidance falls short of analysts' expectations of $2.85 per share on revenue of $10.6 billion, potentially signaling concerns about future demand in the smartphone market. The conservative outlook might be reflecting ongoing macroeconomic uncertainties and competitive pressures in the mobile chip industry.
