Qualcomm Inc. shares gave back regular-session gains — and then some — in the extended session Wednesday even as the chip maker’s quarterly results and outlook topped Wall Street estimates.
Qualcomm QCOM,
Revenue rose to $10.71 billion from $8.24 billion in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of $3.01 a share on revenue of $10.44 billion, based on Qualcomm’s forecast of $2.90 to $3.10 a share on revenue of $10 billion to $10.8 billion.
Shares dropped 8% after hours, following a 6.3% rise in the regular session to close at $188.20.
“We are at the beginning of one of the largest opportunities in our history, with our addressable market expanding by more than seven times, to approximately $700 billion in the next decade,” said Cristiano Amon, Qualcomm’s chief executive, in a statement. “Our one-technology roadmap positions us as the partner of choice for both mobile and the connected intelligent edge.”
Qualcomm reported revenue from its CDMA technologies segment of $8.85 billion, a 35% gain from a year ago, while analysts had estimated $8.69 billion, based on the company’s forecast of $8.4 billion to $8.9 billion.
Revenue from Qualcomm’s technology licensing segment rose 10% to $1.82 billion, while analysts had estimated $1.71 billion, based on a company forecast of $1.6 billion to $1.8 billion.
Qualcomm forecast adjusted second-quarter earnings of $2.80 to $3 a share on revenue of $10.2 billion to $11 billion, while analysts were estimating $2.51 a share on revenue of $9.66 billion.
Over the past 12 months, Qualcomm shares are up 14%, compared with an 18% gain for the PHLX Semiconductor Index SOX,
