Qualcomm second-quarter results beat estimates, shares rise

FILE PHOTO: A Qualcomm sign is pictured at Mobile World Congress (MWC) in Shanghai, China June 28, 2019. REUTERS/Aly Song

(Reuters) – Qualcomm Inc (QCOM.O) on Wednesday beat Wall Street estimates for quarterly results and forecast current-quarter sales largely in line with expectations even though several other chipmakers had flagged concerns of a significant hit from the coronavirus outbreak.

Shares of the company were up 5% in trading after the bell. 

The company forecast total revenue of between $4.4 billion and $5.2 billion for its third quarter. Analysts had estimated a revenue of $4.89 billion, according to IBES data from Refinitiv.

Qualcomm, the world’s biggest supplier of modem chips that connect mobile phones and other devices to wireless data networks, said coronavirus reduced demand for handsets by about 21% in the second quarter from a year earlier, and forecast 30% reduction in handset shipment in the current quarter.

However, Qualcomm’s revenue outlook was in contrast to many other chipmakers, including Intel Corp (INTC.O) and Texas Instrument Inc (TXN.O), who have either withdrawn or cut their revenue forecast, citing impact of the virus on demand and supply channels. 

Total revenue for the company rose about 5% to $5.22 billion in the second quarter ended March 29, beating analysts’ estimates of $5.03 billion.

Excluding items, the company earned 88 cents per share, beating expectations of 78 cents per share.

Reporting by Supantha Mukherjee and Neha Malara in Bengaluru; Editing by Maju Samuel and Vinay Dwivedi

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