Mobile device chipmaker Qualcomm (QCOM) late Wednesday handily beat Wall Street’s targets for its fiscal first quarter and guided above views for the current period. But QCOM stock fell in extended trading.
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The San Diego-based company earned an adjusted $2.75 a share on sales of $9.94 billion in the quarter ended Dec. 24. Analysts polled by FactSet had expected Qualcomm earnings of $2.37 a share on sales of $9.51 billion. On a year-over-year basis, Qualcomm earnings increased 16% while sales climbed 5%.
Qualcomm’s Q1 report marked a return to growth after four straight quarters of declining sales and earnings on a year-over-year basis. Qualcomm was hindered by a downturn in smartphone sales last fiscal year.
For the current quarter, Qualcomm predicted adjusted earnings of $2.30 a share on sales of $9.3 billion. That’s based on the midpoint of its guidance. Analysts had been looking for earnings of $2.25 a share on sales of $9.28 billion in the March quarter. In the year-earlier period, Qualcomm earned an adjusted $2.15 a share on sales of $9.27 billion.
QCOM Stock Falls After Earnings News
“Looking ahead, we are building on this momentum with our leading Snapdragon platforms and technology differentiation in connectivity, computing and on-device generative AI, across handsets, automotive, PC, XR (extended reality) and industrial IoT (Internet of Things),” Chief Executive Cristiano Amon said in a news release.
In after-hours trading on the stock market today, QCOM stock fell 1.1% to 146.85. During the regular session Wednesday, QCOM stock advanced 1.7% to close at 148.51.
In the December quarter, Qualcomm’s handset chip sales rose 16% to $6.69 billion. Automotive chip sales increased 31% to $598 million. But Internet of Things chip sales declined 32% to $1.14 billion.
Skyworks Rises After Report
Elsewhere among semiconductor stocks, Skyworks Solutions (SWKS) rose Wednesday after posting fiscal first-quarter results late Tuesday. SWKS stock ended the regular session up a fraction to 104.46.
The wireless-chip maker edged above analyst estimates for earnings on in-line sales in the December quarter. Skyworks also guided above views for sales in the current quarter.
Irvine, Calif.-based Skyworks gets most of its revenue from Apple (AAPL). The iPhone maker accounted for 73% of Skyworks’ revenue last quarter.
Skyworks ranks No. 11 out of 32 stocks in IBD’s semiconductor manufacturing industry group, according to IBD Stock Checkup. SWKS stock has a subpar IBD Composite Rating of 47 out of 99.
Meanwhile, Qualcomm ranks eighth out of 38 stocks in IBD’s fabless semiconductor industry group, IBD Stock Checkup says. QCOM stock has an IBD Composite Rating of 89.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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Read More: QCOM Stock: Qualcomm Returns To Growth In Q1