Qualcomm's Earnings Shadowed by Tax Write-Down

3 months ago

Carmen Reiniki

"Yeah, so Qualcomm is actually also down in after hours. Ticker QCOM down about 3.8% right now. Um, so the company also had really solid earnings, but is really being overshadowed by a tax change that resulted in a $5.7 billion write down in the quarter contributing to about a $3 billion loss. Um, the other thing is that shares of Qualcomm were up really sharply into the report. It sort of rallied in the last few weeks. So that might have also sort of boosted expectations going into the report. Otherwise though the quarter looked pretty good with sales roughly around 12 billion in the fiscal first quarter and profit higher than analysts expected, suggesting strong demand in the Android phone market."

Qualcomm experienced a modest after-hours decline of 3.8% following a $5.7 billion tax-related write down, despite solid underlying earnings and stronger-than-expected profit. The mixed results appear to stem from elevated expectations that were not met after a strong pre-report rally.

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