Qualcomm earnings prediction report:
On Wednesday, Qualcomm projected a fiscal second-quarter profit just above Wall Street estimates and sales in line with market expectations. This optimistic outlook is fueled by a new series of AI-enabled chips, contributing to its recovery from last year’s smartphone downturn.
Qualcomm anticipates sales and adjusted profit for the ongoing fiscal second quarter ending in March, with a midpoint projection of $9.30 billion in sales and $2.30 per share in adjusted profit. This forecast aligns closely with analyst expectations of $9.30 billion in sales and $2.25 per share, as reported by LSEG data.
As the leading chip supplier to a smartphone market experiencing its weakest sales year in a decade in 2023, Qualcomm grapples with increased competition. In the slow recovery of the smartphone industry, challenges arise from Huawei and Samsung Electronics using in-house chips, while Taiwan’s MediaTek poses a threat to Qualcomm’s dominance in mid- and premium-tier Android phones.
Despite challenges, the San Diego-based company renewed a chip supply agreement with Apple last year. Additionally, Qualcomm is diversifying into new markets, including personal computers. Partnerships with companies like Dell Technologies and Lenovo Group are set to introduce laptops featuring Qualcomm’s chips, which the company asserts are faster than Apple’s in-house processors.
In the fiscal first quarter concluding on Dec. 24, Qualcomm disclosed sales and adjusted profit figures of $9.94 billion and $2.75 per share. These results exceeded estimates of $9.52 billion and $2.37 per share, as per LSEG data.