Qualcomm (QCOM) earnings This autumn 2022

Qualcomm shares fell 7% in prolonged buying and selling on Wednesday after the chipmaker reported in-line fiscal fourth-quarter earnings however provided poor first-quarter steering.

Qualcomm additionally stated it applied a hiring freeze at the beginning of the present quarter.

Here is how the corporate did:

• Earnings: $3.13 per share, adjusted, vs. $3.13 per share as anticipated by analysts, in response to Refinitiv.
• Income: $11.39 billion, adjusted, vs. $11.37 billion as anticipated by analysts, in response to Refinitiv.

Total income grew 22% year-over-year within the quarter that ended Sept. 25, in response to an announcement.

With respect to steering, Qualcomm known as for fiscal first-quarter adjusted earnings of $2.25 to $2.45 per share on $9.2 billion to $10 billion in income. Analysts polled by Refinitiv had anticipated earnings per share of $3.42 and income of $12.02 billion.

“Given the uncertainty brought on by the macroeconomic atmosphere, we’re updating our steering for calendar yr 2022 3G/4G/5G handset volumes from a year-over-year mid-single-digit share decline, to a low double-digit share decline,” Qualcomm stated within the report. “The speedy deterioration in demand and easing of provide constraints throughout the semiconductor trade have resulted in elevated channel stock.”

Income in Qualcomm CDMA Applied sciences, or QCT class, which incorporates smartphone chips, radio frequency front-end parts, automotive chips and web of issues units, totaled $9.9 billion. That was up 28%, and it is greater than the $9.87 billion consensus amongst analysts polled by StreetAccount.

Throughout the QCT phase, income from cellular handsets got here to $6.57 billion, up 40% and a hair beneath the StreetAccount consensus of $6.59 billion. Automotive chips grew 58% on an annual foundation to $427 million. Qualcomm’s IoT enterprise, which makes low-power chips for related units, grew 24% to $1.92 billion. RF front-end chips fell 20% to $992 million.

The Qualcomm Expertise Licensing, or QTL, the opposite main Qualcomm unit that is comprised of licensing charges associated to 5G and different applied sciences the corporate makes, produced $1.44 billion in income, which was up 8% however decrease than the $1.58 billion StreetAccount consensus.

On a name with buyers Wednesday, CEO Cristiano Amon stated the semiconductor trade is dealing with macroeconomic headwinds “from which we’re not immune.” He added the corporate has already applied a hiring freeze and is ready to make additional reductions to working bills as wanted.

“We’re in a powerful place to handle the near-term headwinds,” Amon stated. He emphasised through the name that the corporate was dealing with a “momentary cyclical stock drawdown.”

A spokesperson instructed CNBC the hiring freeze was applied at the start of fiscal 2023.

Through the quarter, Qualcomm stated it had prolonged a patent-licensing settlement with Samsung by means of 2030. And Arm, which supplies the chip architectures Qualcomm makes use of, filed swimsuit in opposition to Qualcomm over breach of license agreements and trademark infringement.

However the after-hours transfer, Qualcomm shares are down 37% to date this yr, whereas the broader S&P 500 index is down 20% over the identical interval.

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Correction: Up to date to replicate Qualcomm reported $6.57 billion in handset income. An earlier model rounded as much as $6.6 billion.