Cristiano Amon, CEO of Qualcomm.

Steve Marcus | Reuters

Qualcomm shares rose as much as 4% in extended trading Thursday after the chipmaker reported lower-than-expected fiscal first-quarter revenue and posted weak quarterly guidance. Here’s how the company did it:

  • income: $2.37 per share, adjusted, versus $2.34 per share, as analysts expected, according to Refinitiv.
  • income: $9.46 billion versus the $9.60 billion analysts expected, according to Refinitiv.

Qualcomm’s total revenue fell 12% year over year in the quarter ended Dec. 25, according to the statement. Net income fell 34% to $2.24 billion. The macroeconomic environment and higher channel inventories hurt results, the company said.

Revenue from the Qualcomm CDMA Technologies (QCT) segment, which includes smartphone chips, radio frequency input components, automotive chips and Internet of Things devices, generated $7.89 billion in sales for the quarter. That figure was down 11% and below the $8.03 billion consensus of analysts polled by StreetAccount.

In that segment, mobile revenue came in at $5.75 billion, down 18% but beating the StreetAccount consensus of $5.20 billion. Technology industry researcher IDC estimated that smartphone shipments fell 18% in the fourth quarter, the sharpest drop on record.

Qualcomm Technology Licensing (QTL), which includes rights to use the company’s mobile patents, brought in $1.52 billion, down 16% from the StreetAccount consensus of $1.54 billion.

In terms of guidance, Qualcomm is calling for fiscal second-quarter adjusted earnings of $2.05 to $2.25 per share on revenue of $8.7 billion to $9.5 billion, implying an 18.5% decline in revenue in the mid-range. . Analysts polled by Refinitiv had expected $2.26 in adjusted earnings per share on revenue of $9.55 billion.

In the quarter, Qualcomm and Renault Group announced an expansion of their collaboration and said Qualcomm will invest in Ampere, the carmaker’s electrical and software company.

Qualcomm shares have fallen 28% in the past year, excluding after-hours movement, compared with a 9% drop in the S&P 500 over the same period.

Executives will discuss the results with analysts during a conference call beginning at 4:45 p.m. ET.

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