Qualcomm stock falls after a slight earnings beat, revenue miss

Yahoo Finance's Dan Howley breaks down Qualcomm's fourth-quarter earnings.

影片文字轉錄稿

[AUDIO LOGO]

DAVE BRIGGS: Thanks, Rachelle. Earnings alert here. Qualcomm has now reported. Dan Howley is here to break down the numbers. You can see shares moving to the downside about 7% after-hours. Dan, what are we seeing?

DAN HOWLEY: Yeah, so they met expectations on revenue. They came in at 11.39. The expected was 11.4. So you can round up there, and they're meeting it. But as far as adjusted EPS, they missed. They came in at $3.11 versus expectations of $3.13.

But the big deal here is for the next quarter, their Q1. They have expectations for adjusted EPS of $2.25 to $2.45. The expectation, though, from Wall Street was for them to announce $3.40. That's a big difference. So that's why we're starting to see or potentially why we're starting to see that stock price start to slip now, down around 5%.

And part of that has to do with the smartphone market and how we're seeing weakness there as far as people not necessarily needing or wanting to go out and buy smartphones, making these big kind of pricey purchases when the economy is-- we're hearing so much about a potential recession. And I think that seeps down to the average consumer.

And so they kind of pull back on that kind of spending, especially on something like a smartphone where, look, if the one in your pocket works, you don't necessarily need a new one. It's more of a luxury buy when you don't have those kinds of issues. So I do think that that's probably something that we're going to continue to talk about.

Obviously, Apple had had a lighter quarter than expected for their iPhone sales. So that's a pretty good indicator of how the rest of the industry is doing, especially since, you know, it's Apple.

DAVE BRIGGS: Hopefully we get a read on if that Apple relationship is going to continue longer than we originally thought, which could certainly help, Dan Howley, thank you. Good stuff there with Qualcomm earnings.