GoKawiilQualcomm reported fiscal third-quarter earnings on Wednesday that were in line with analyst expectations, but it provided light guidance for current-quarter earnings on in-line revenue, blaming the ongoing supply crunch for computer parts, especially memory. Shares fell in extended trading.
Qualcomm is taking concrete measures to expand its margins going forward, CEO Cristiano Amon said in an interview, including raising prices across the board starting on September 1 for the company's chips, most of which currently go to smartphone makers, and looking for other ways to streamline the company's supply chain.
"Cost went up, prices are going to go up," Amon said.
Here's how the chipmaker did versus LSEG consensus estimates:
EPS : $2.21, adjusted, versus $2.23 estimated
: $2.21, adjusted, versus $2.23 estimated Revenue: $9.95 billion versus $9.67 billion estimated
In the current quarter, Qualcomm said it expects adjusted earnings per share of between $2.05 to $2.25 on revenue between $9.7 billion and $10.5 billion. Analysts polled by LSEG were expecting $2.36 in adjusted earnings per share on $10.02 billion of sales.
"The semiconductor industry is experiencing a broad-based increase in input costs, across wafer fabrication, assembly, test, advanced packaging, memory and other materials," Qualcomm said in its release, although, as management noted, "revenues continue to be healthy."
The company's handsets business remains the largest slice of chip sales, although Qualcomm under Amon is looking to diversify to cars, smart glasses, and robots, and is targeting non-smartphone sales to be 60% of the company's revenues next year.
Qualcomm reported $5.1 billion in handset chip sales, which was down 20% on an annual basis, and which the company said reflected a bottoming in the China market.