Qualified Earnings Beat for QCOM but Shares Fall

3 months ago

Kitty Gupta

"Qualcomm of course is known for making the uh the chips and the processors that used to be part of uh the Apple iPhone. And so they were part of the Apple supply chain for a very long time until Apple uh went in other directions. Nevertheless, Qualcomm had diversified their kind of customer base for quite some time. This earnings story shows a little bit of a different um picture. Like you said, things are fine. Things are looking pretty good. They actually did meet uh the earnings. They gave a positive outlook. Analysts were broadly positive on the report. They even talked about a profit hit from a US tax change, yes, they did have a profit hit from a US tax change on that, but it wasn't as big as the street was expecting. So again, they should be good numbers across the board and yet it fell. And now this really speaks to this idea that they did come up with some positive numbers, but they weren't as positive. It wasn't as big of a meet or margin of a beat as uh analysts were expecting. So you are seeing the shares actually come down uh just a little bit this morning to the tune about 3%."

The commentary on Qualcomm (QCOM) highlights that while the company delivered positive earnings and outlook, the results did not exceed expectations, resulting in a modest 3% drop in share price.

Related Stocks