President and CEO of Qualcomm Cristiano Amon delivers a speech at the Web Summit at Parque das Nacoes in Lisbon, on November 12, 2024.
Qualcomm reported fiscal first-quarter earnings on Wednesday that beat expectations, but the company's forecast came up short because of the global memory shortage. The shares tumbled 10% in extended trading.
Here's how the chipmaker did versus LSEG consensus estimates:
EPS : $3.50, adjusted, versus $3.41 expected
: $3.50, adjusted, versus $3.41 expected Revenue: $12.25 billion, versus $12.21 billion expected
In the current quarter, Qualcomm said it expects adjusted earnings per share between $2.45 and $2.65 on revenue of $10.2 billion to $11 billion. Analysts polled by LSEG were expecting $11.11 billion in sales and earnings of $2.89 per share.
Qualcomm executives said in an interview that the shortfall in guidance was directly related to the global memory shortage. Big orders for data center memory are taking production capacity for memory for smartphones and other devices.
The company's smartphone customers, who buy their own memory and pair it with Qualcomm's processors and modems, are closely watching their purchases and inventories and adjusting them based on the availability of memory.
Qualcomm finance chief Akash Palkhiwala said the guidance gap versus consensus estimates was due to the memory issue.
"We're starting to see that memory is going to define the size of the mobile market," Qualcomm CEO Cristiano Amon said in an interview.
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