Why Qualcomm Stock Falls Today

shares Qualcomm (NASDAQ: QCOM) Shares fell 5% on Thursday despite better-than-expected quarterly results and solid forward guidance from the semiconductor giant.

On Qualcomm’s strong start to fiscal year

For the first fiscal quarter of 2024 (ended December 24, 2023), Qualcomm’s adjusted (Non-GAAP) revenue increased 5% year over year to $9.922 billion, which meant adjusted net income increased 16% to $3.101 billion, or $2.75 per share. Analysts on average forecast earnings of just $2.37 per share on revenue of $9.52 billion.

Qualcomm CEO Cristiano Amon noted that quarterly results exceeded the upper end of Qualcomm’s own guidance.

“Going forward, we will build on this momentum by leveraging our leading Snapdragon platform and technology differentiation in generating artificial intelligence in connectivity, computing and devices across mobile, automotive, PC, XR and industrial sectors. [Internet of Things],” He said.

What’s next for Qualcomm shareholders?

Qualcomm said it currently expects revenue in the second fiscal quarter of 2024 to be between $8.9 billion and $9.7 billion, which would mean adjusted earnings per share of $2.20 to $2.40. By comparison, most analysts are looking at fiscal second-quarter earnings of $2.25 per share, just below the midpoint of guidance, on revenue of about $9.3 billion.

Of course, it’s worth noting that Qualcomm’s stock price has risen nearly 35% since mid-October, so investors may be using its embedded guidance to capture some quick profits. With a dividend yield of 2.3% at today’s prices and clear strong momentum across various verticals, this pullback is likely to prove to be a solid buying opportunity for patient long-term shareholders.

Should you invest $1,000 in Qualcomm right now?

Before buying Qualcomm stock, consider the following factors:

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Steve Symington The Motley Fool has no position in any of the stocks mentioned. The Motley Fool owns and recommends Qualcomm stock. Motley Fool has disclosure policy.

Why Qualcomm Stock Falls Today Originally published by The Motley Fool

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