Qualcomm, the mobile-phone chip maker, has issued the same revenue guidance for the current quarter as it did for the prior quarter. This indicates the ongoing challenges faced by the company in the smartphone market.
For the fiscal fourth quarter, Qualcomm forecasts revenue between $8.1 billion and $8.9 billion, which aligns with analysts’ estimates. It is worth noting that in May, the company provided the same guidance for the recently completed third quarter, although analysts initially predicted $9.1 billion.
In addition to the revenue forecast, Qualcomm also predicts adjusted earnings for the fourth quarter to range between $1.80 and $2 per share. Analysts polled by FactSet had expected earnings per share of $1.92.
The San Diego-based company highlights that its guidance reflects the continued impact of macroeconomic headwinds, weaker global handset units, and channel inventory drawdown. These factors have contributed to the challenges faced by Qualcomm in recent times.
Although Qualcomm’s communication and data-processing chips are crucial components in phones from Apple and Samsung, the company has experienced a decline in handset sales. However, it has found opportunities for growth in newer markets such as the automotive industry.
- Denny Jacob