Qualcomm shares tumble over 9% after weak Q1 guidance despite Q4 earnings beat
Qualcomm reported fourth‑quarter results that beat estimates, but its outlook for the first quarter disappointed investors. The company forecast adjusted earnings of $2.15‑$2.35 per share and revenue of $10.4‑$11.2 billion, both below analyst expectations. Handset‑chip revenue fell 26% to $5.14 billion, pulling total chip‑segment sales down 8% to $9.02 billion. The guidance miss triggered price‑target cuts by at least ten brokerages and sent the stock down more than 9% in early trading.
Why it matters
The lower guidance suggests weaker near‑term cash flow, which may pressure Qualcomm’s valuation and affect investors’ exposure to the broader semiconductor sector. Brokerages cutting price targets signal a revised downside outlook for the stock.
Key facts
- 1Qualcomm expects Q1 adjusted earnings of $2.15‑$2.35 per share, below analysts’ estimate of $2.27. cnbc.com
- 2The company projects Q1 revenue of $10.4‑$11.2 billion, slightly under the $10.48 billion consensus. cnbc.com
- 3Handset‑chip revenue declined 26% to $5.14 billion. finance.yahoo.com
- 4Total chip‑segment sales fell 8% to $9.02 billion. finance.yahoo.com
- 5At least ten brokerages cut their price targets on Qualcomm after the report. finance.yahoo.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.