Daily Management Review

Qualcomm shares fall amid concerns about slowing smartphone market growth


02/07/2025


Qualcomm's shares, the leading provider of smartphone chips globally, declined by 4.6% in after-hours trading on the Nasdaq due to worries from investors that demand for new mobile devices might decrease, Bloomberg reports citing trading data.



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Qualcomm published its report for the first quarter of fiscal 2025, which concluded on Dec. 29. CNBC highlights that the financial outcomes exceeded expectations. Qualcomm's revenue increased by 18% compared to last year, reaching $11.67 billion, and the adjusted earnings per share were $3.41. The newspaper notes that analysts polled by London Stock Exchange Group (LSEG) anticipated average revenue of $10.93 billion and an EPS of $2.96.
 
Qualcomm predicts its revenue for the fiscal second quarter, concluding in March, will range from $10.3 billion to $11.2 billion. The Technology Licensing division, responsible for licensing Qualcomm's intellectual property, is anticipated to produce revenue between $1.25 billion and $1.45 billion; this contrasts with analysts' consensus of $1.4 billion, according to Bloomberg.
 
The forecast for the licensing sector, which relies on the projected number of smartphones sold, has prompted some analysts to doubt the industry's future, Bloomberg reports.
 
source: bloomberg.com, cnbc.com