Why Qualcomm Shares Are Falling Today: Next-Quarter Guidance Highlights Headwinds

Qualcomm Inc. QCOM shares are trading lower Thursday, following the release of its fiscal third-quarter earnings.

Earnings Recap: Qualcomm reported third-quarter results with revenues of $9.4 billion, surpassing the consensus estimate of $9.22 billion. The company’s earnings per share (EPS) also beat expectations, coming in at $2.33 versus the anticipated $2.25.

This performance was driven by strong growth in the Auto and IoT segments. However, the guidance for the next quarter highlighted potential headwinds, particularly the earlier-than-expected revoking of the company’s license to sell to Huawei.

Analysts’ Updates:

• Piper Sandler: Analyst Harsh Kumar reiterated an Overweight rating, raising the price target from $185 to $205. Kumar noted the strength from Android and an upcoming ramp with a modem-only customer, despite flat guidance for the Auto segment sequentially.
• JPMorgan: Analyst Samik Chatterjee maintained an Overweight rating but lowered the price target from $235 to $230. Chatterjee highlighted the premium smartphone market and growth in the Autos and IoT businesses as key drivers.
• Cantor Fitzgerald: Analyst C.J. Muse reaffirmed a Neutral rating with a $215 price target, expressing disappointment with the initial guidance for the December quarter and highlighting the impact of Huawei’s export restrictions.
• WestPark Capital: Analyst Kevin Garrigan reiterated a Hold rating, pointing out the strength in the premium-tier smartphone market and the Auto and IoT segments but noting the persistent Huawei headwind.
• Oppenheimer: Analyst Rick Schafer maintained a Perform rating, mentioning mixed results and uncertainties regarding Apple’s future relationship with Qualcomm and the potential impact of AI.

Price Action: Qualcomm’s shares were down by 9.52% to $163.72, according to Benzinga Pro.

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