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Qualcomm stock falls after revenue guidance misses estimates

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Yahoo Finance tech reporter Allie Garfinkle assesses Qualcomm's stock movement following its mixed third-quarter earnings report.

Video Transcript

SEANA SMITH: Lenore and Lisa, hang on one second. We want to get to Allie Garfinkle. We have Qualcomm out with its earnings report, the stock off after hours. Allie, what can you tell us?

ALLIE GARFINKLE: Seana, with Qualcomm, we have mixed results today. Revenue top line, we have a beat of 10.93 billion versus 10.87 billion expected. Adjusted earnings per share bottom line, 2.96 versus 2.86 expected. So looks pretty good, but shares are actually falling at Qualcomm based on the guidance for Q4. So not what people were expecting.

It's worth noting also that Qualcomm, as it extends its partnership with Samsung, is reporting, actually, at the backdrop of a global chip shortage, inflation, rising interest rates, which can affect corporate purchases, and of course, the tech route. Qualcomm has been trying to diversify, so kind of a mixed story over here for Qualcomm today.

SEANA SMITH: It certainly looks like that. Again, the shares off just over 3% after hours. Allie, thanks so much. Lisa, let me get your reaction to what we're seeing so far from the tech sector and some of these semiconductors. So Qualcomm falling here. A lot of that has to do with guidance. The earnings that we got from Microsoft and Alphabet yesterday was enough to satisfy the Street, but they weren't great. We're waiting Meta. They're going to be out any minute. What do you make of where things stand, more broadly speaking, in the tech sector?

LISA ERICKSON: --have seen a more difficult season would have been anticipated a few quarters ago. And I think what we're really seeing in the earnings reports is the fact that there really was a pullforward during the initial start of the COVID pandemic. People thought that folks could continue on, that there wasn't necessarily going to be a diminishing of the demand.

But we are seeing some economic normalization where people are going back to more in-person experiences, as opposed to just online. So that remains to be seen as we continue to report out if those trends continue. But again, I think the big picture here is that we are seeing while, maybe a secular tailwind to continued use of technology, some slowdown in the demand here in the intermediate term.