Shares of Qualcomm (QCOM) - Get Report were falling after hours Wednesday after the company reported fiscal first quarter revenue that slightly missed estimates, and also gave sales guidance for its lucrative patent licensing division that was below expectations.
The San Diego-based chip designer reported first quarter revenue of $8.24 billion on diluted earnings of $2.12 per share. Analysts were expecting the company to report revenue of $8.27 billion with earnings of $2.10 per share.
“We delivered an exceptional quarter, more than doubling earnings year-over-year due to strong 5G demand in handsets and growth in our RF front-end, automotive and IoT adjacencies, which drove record earnings in our chip business,” said CEO Steve Mollenkopf. “We remain well positioned as the 5G ramp continues and we extend our core technology roadmap to adjacent industries.”
For the second quarter, the company expects revenue between $7.2 billion and $8 billion with a diluted EPS between $1.55 and $1.75 per share. Analysts are expecting revenue of $7.1 billion with earnings of $1.57 per share. The company’s sales forecast for its patent licensing division, however, came in at a midpoint of $1.35 billion, lower than consensus estimates for $1.43 billion.
Shares were down 8.2% to $148.99 after hours Wednesday.
Last month, the smartphone chipmaker announced it was planning to acquire chip start-up Nuvia for about $1.4 billion.
Based in Santa Clara, Calif., Nuvia was founded in 2019 and has about 100 employees, according to Reuters, and the company has been working on a custom CPU core design that it had said would be used in server chips.
Qualcomm said it plans to integrate Nuvia's processors across a broad portfolio of products, including powering flagship smartphones, next-generation laptops, infotainment systems and driver-assistance systems, among other applications.