Qualcomm Q1 Profit Beats Street View; But Revenues Fall Short; Shares Down 8%

(RTTNews) - Shares of Qualcomm Inc. (QCOM) slipped 8% in extended trading session Wednesday after the chip maker reported a mixed results for the first quarter. Qualcomm's first-quarter earnings trumped Wall Street estimates, but revenues fell short of expectations.

San Diego, California-based Qualcomm's first-quarter profit surged to $2.46 billion or $2.12 per share from $925 million or $0.80 per share last year.

Adjusted earnings for the quarter were $2.51 billion or $2.17 per share. Analysts polled by Thomson Reuters expected earnings of $2.10 per share. Analysts' estimates typically exclude special items.

Qualcomm's first-quarter revenues surged 62% to $8.24 billion from $5.08 billion last year. Analysts had a consensus revenue estimate of $8.27 billion for the quarter.

"We delivered an exceptional quarter, more than doubling earnings year-over-year due to strong 5G demand in handsets and growth in our RF front-end, automotive and IoT adjacencies, which drove record earnings in our chip business," said CEO Steve Mollenkopf. "We remain well positioned as the 5G ramp continues and we extend our core technology roadmap to adjacent industries."

Looking forward, the company expects second-quarter adjusted earnings of $1.55 to $1.75 per share and revenues of $7.2 billion to $8.0 billion Analysts currently estimate earnings of $1.57 per share and revenues of $7.1 billion.

QCOM closed Wednesday's trading at $162.30, down $2.48 or 1.51%, on the Nasdaq. The stock further gained $13.00 or 8.01% in the after-hours trade.