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Qualcomm Shares Dip Even After Q1 Earnings Beat Over China Coronavirus Outlook

Neer Varshney

The shares of Qualcomm Incorporated (NASDAQ: QCOM) dipped 4% in the after-hours session on Wednesday.

What Happened

Qualcomm Chief Financial Officer Akash Palkhiwala on the earnings call said that there is significant uncertainty around the company's supply chain from China as the spread of the novel coronavirus has significantly impacted the operations in the country.

The semiconductor and telecom equipment maker beat analyst estimates in its first-quarter earnings report earlier in the day.

The company posted an earnings per share of 99 cents, up 16.5% from analyst average. The quarterly sales were $5 billion, ahead of last year's $4.8 billion.

The economic activity in China is significantly impacted by the coronavirus, as its Hubei province, where the virus originated, remains under lockdown.

At least 28,018 cases of the virus have been confirmed in mainland China, with more than 560 people dead, according to the Associated Press. About 200 odd cases have been confirmed internationally in 25 countries.

Price Action

Qualcomm's shares traded 2% lower at $89.1 at press time, dipping as low as $87.40 after the earnings call in the evening. The shares closed the regular session 2.23% higher at $90.9.1

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