Qualcomm stock trends lower following Q3 revenue forecast miss

Yahoo Finance Live discusses a drop in Qualcomm shares following its Q2 earnings report noting the company's third-quarter revenue forecast.

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SEANA SMITH: Let's get to some breaking news. Qualcomm out with its most recent earnings results. You can see the stock off just about 2.5%. The pressure there is because of its fiscal 3Q revenue guidance. That missed the Street's expectations. The forecast indicating that the smartphone slump is going to drag on for some time, Qualcomm having some challenges here navigating this industry wide slowdown that we have seen. In terms of its most recent quarter, the 2Q numbers revenue actually coming in better than expected. Adjusted EPS in line with the Street's expectations at $2.15. Sales for the quarter $9.27 billion. But Diane, it was that forecast there for its fiscal 3Q sales. That's why we're seeing the stock under pressure.

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DIANE KING HALL: Right. And looking at their earnings report right now saying that, "As we navigate this challenging environment," they tried to spin it, "we remain focused on the critical factors we can control to emerge stronger from this downturn." So certainly acknowledging the downdraft we're seeing with regard to the smartphone demand market. We saw in the first quarter research showing that mobile smartphone-- global mobile smartphone demand down 13% year over year. Qualcomm certainly feeling the effects of that.

And we're seeing that play out with regard to both the report and the market reaction there on their latest quarterly report card. And there have been some buzz about potential job cuts that could be coming down the pike. So that will be certainly a point to watch later as we hear from them following their earnings call.