Qualcomm (QCOM) shares tumbled 5.36% in pre-market trading on Thursday following the company's disappointing third-quarter revenue forecast, which fell short of analysts' expectations. The chipmaker's cautious outlook reflects growing concerns about the macroeconomic environment and global trade tensions.
For the current fiscal quarter, Qualcomm expects revenue between $9.9 billion and $10.7 billion, with the midpoint of $10.3 billion falling below the consensus estimate of $10.35 billion. While the company reported strong second-quarter results, with earnings per share of $2.85 beating estimates of $2.82, investors focused on the tepid forward guidance.
Qualcomm CFO Akash Palkhiwala addressed the uncertainty surrounding trade issues during the conference call, stating, "There's uncertainty around the impact of the global trade landscape on demand across our businesses." He added that while the company does not see any material direct impact from tariffs, there is a smaller, indirect impact and some minor changes in demand. The chipmaker's cautious stance on smartphone chip demand also contributed to investor concerns, as Qualcomm is the world's largest supplier of modem chips for mobile devices.
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