Qualcomm Stock Fell as Results Showed a Smartphone Sales Decline

Qualcomm Stock

Qualcomm Stock (NASDAQ:QCOM)

The communications chipmaker Qualcomm (NASDAQ:QCOM) is slated to release its financial results for the first quarter of the fiscal year after the market closes on Thursday. Qualcomm’s report will be released amid various business updates for some of the most successful semiconductor companies.

The current consensus among analysts on Wall Street is that Qualcomm will report earnings of $2.35 per share, excluding the impact of any one-time items, on sales of $9.57 billion for the quarter that ended in December. As for Qualcomm, the company has said that it anticipates earning between $2.25 and $2.45 per share, with sales falling somewhere in the region of $9.2 billion to $10 billion.

During the same time period a year earlier, Qualcomm stock generated revenue of $10.7 billion and earnings per share of $2.98, excluding any one-time items.

What Qualcomm has to say about the condition of the smartphone industry is one of the topics that analysts and investors will be focusing on to a significant degree. It is anticipated that there will be a significant drop in the number of smartphones shipped during the last three months of 2022. Qualcomm (QCOMsales ) could have been harmed directly due to this drop in the number of smartphones sold.

As part of its strategy to diversify into automotive systems and other business sectors, Qualcomm has announced that it would reduce the amount of product, it ships to one of its most important clients, Apple. Cowen analyst Matthew Ramsay stated in a research report that he believes Qualcomm, at its recent analyst day, “proactively removed a significant amount of Apple modem overhang.” As a result, the company has set a “conservative floor” for its upcoming results. Ramsay made these statements about Qualcomm’s recent analyst day.

Qualcomm stock is now being recommended for purchase by a majority of Wall Street analysts.

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About the author: I'm a financial journalist with more than 1.5 years of experience. I have worked for different financial companies and covered stocks listed on ASX, NYSE, NASDAQ, etc. I have a degree in marketing from Bahria University Islamabad Campus (BUIC), Pakistan.