Qualcomm Inc. shares fell. in Wednesday ‘s extended session, after the chipmaker’ s revenue came in slightly lower than expected, acknowledging that supply constraints across the industry were impacting performance.
“In particular, our strong performance and outlook would have been stronger if we had not been constrained by supply,” Qualcomm QCOM,
CEO Steve Mollenkopf said on call the analyst.
Qualcomm President Cristiano Amon analyzed the call about the supply situation.
“We’ve seen, I think, a shortage across the whole industry,” said Amon. Chip demand is outpacing supply for many chip makers and hardware companies in today’s digitally controlled COVID-19 environment.
In early January, Qualcomm announced that Amon will succeed Mollenkopf as CEO on June 30th.
“The V-shaped recovery we’ve seen across the industry and the accelerated digitization are all driving semiconductors, and we see that in the table,” Amon told analysts on call.
Qualcomm reported net fiscal revenue in the first quarter of $ 2.46 billion, or $ 2.12 billion, compared to $ 925 million, or 80 cents a share, in the year-ago period. Adjusted earnings, which exclude compensation costs based on stock and other items, were $ 2.17 a share, compared to 99 cents in a share in the previous year. Revenue rose to $ 8.24 billion from $ 5.08 billion in the fourth year ago.
Analysts conducted by FactSet had forecast $ 2.10 a share of revenue of $ 8.27 billion, based on Qualcomm’s forecast of between $ 1.95 and $ 2.15 a share on revenue of $ 7.8 billion to $ 8.6 billion.
Qualcomm said its wireless and mobile business, which includes 5G chips and sales for handheld devices, rose 79% to $ 4.22 billion from a year ago, while sales for chips for antennas mobile device, or RF face output, up 157% to $ 1.06 billion from the fourth year ago.
Shares fell more than 8% in after-hours trading just after the results were released, and were down 7.4% before the conference call ended. That came after a 1.5% decline in the regular session, with Qualcomm shares closing at $ 162.30.
Qualcomm’s forecast changed earnings in the second quarter from $ 1.55 to $ 1.75 a share on revenue of $ 7.2 billion to $ 8 billion, while analysts estimated a $ 1.58 share on futures $ 7.11 billion in revenue.
Over the past 12 months, Qualcomm shares are up 88%, compared to a 65% gain for the PHLX SOX Semiconductor Index,
18% increase with the S&P 500 SPX index,
and a 47% gain in the Nasdaq Composite Index COMP index,