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Shares of chipmaker Qualcomm (QCOM)  were down more than 4% after hours on Wednesday despite beating earnings and revenue estimates, as the company's guidance failed to meet expectations.

Qualcomm reported fiscal second quarter revenue of $4.9 billion on earnings of 77 cents per share. Analysts were expecting the company to report revenue of $4.8 billion on earnings of 71 cents per share. 

"We delivered a better than expected quarter with earnings per share above the high end of our estimates, reflecting stronger QTL results and solid execution in QCT," said Steve Mollenkopf, CEO of Qualcomm. "We are also pleased to have reached multi-year agreements with Apple and look forward to continuing to support them as a customer. We are executing well on our strategic priorities as 5G commercial launches begin around the world."

Qualcomm finally settled its long-running dispute over royalties with Apple (AAPL) in April, resulting in a cash payment to Qualcomm from Apple and a multi-year agreement to supply Apple with chips for its smartphones. News of the settlement caused Qualcomm's stock to soar.

On Wednesday, Qualcomm said it would book $4.5 billion to $4.7 billion in its fiscal third quarter as a result of its settlement with Apple. 

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However, the company's forward looking sentiment wasn't strong enough to keep investors interested. 

The company expects to generate earnings between 70 cents and 80 cents per share in the current quarter, a 20% to 30% decrease from the year ago period. The guidance was short of Wall Street's expectation for earnings of $1.29 per share. 

Still, the company believes that 5G will provide a key growth opportunity in the future. 

"Our 5G technology and product leadership, as well as our expansion into new industries and product categories, creates a strong foundation for long-term revenue and earnings growth," Mollenkopf said. 

Shares of Qualcomm were up almost 45% this year heading into earnings.

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