Qualcomm's Stock Slides on Weak Guidance (Update1)
NEW YORK (TheStreet) -- Qualcomm
The San Diego-based firm, which supplies semiconductors to handset makers including Apple
|Qualcomm reported second-quarter earnings after market close on Wednesday|
In the most recent quarter, Qualcomm posted earnings, excluding items, of $1.01 a share on $4.94 billion in revenue. Analysts polled by Thomson Reuters had expected earnings of 96 cents a share on $4.84 billion in revenue.
Shares of Qualcomm finished the regular session lower, down 0.3% to close at $67.05. In extended-hours trading, after the report was released, Qualcomm extended a decline to 3.5%, according to Nasdaq.com.
The semiconductor company said it's seeing supply constraints for its 28 nanometer chips, as demand is outpacing supply. It's working on getting supply up to speed, and that will cause operating expenses to be slightly higher in the third quarter.
Still, Qualcomm reaffirmed its full-year revenue guidance of $18.7 billion to $19.7 billion, up 25% to 32%. It also raised its non-GAAP full-year earnings to $3.61 to $3.76 per share, up from a previous $3.55 to $3.75.
Qualcomm CEO Paul Jacobs cited growth in 3G and 4G smartphones in the most recent quarter. On a conference call, the company said there are more than 370 announced Snapdragon devices, and more than 400 in design. The company is expecting stronger demand in the last half of the year than it was a few months ago as more products come online.
Also of note was the comment that there is going to be a lot of focus on product launches in the company's September quarter, and particularly in the December quarter.
The chipmaker ended the quarter with $26.6 billion in cash, up from $22.1 billion in the year-earlier quarter.
Interested in more on Qualcomm? See TheStreet Ratings' report card for this stock.
--Written by Chris Ciaccia in New York
>To follow the writer on Twitter, go to http://twitter.com/commodity_bull.
>To submit a news tip, send an email to: email@example.com