Did Investors Overreact to Qualcomm's Covid-19 Warning?
Qualcomm (NASDAQ: QCOM) recently posted first-quarter numbers that beat Wall Street's expectations. The chipmaker's revenue rose 5% annually to $5.08 billion, topping estimates by $250 million. Its non-GAAP earnings fell 18% to $0.99 per share, but still cleared expectations by $0.14.
Qualcomm expects its second-quarter revenue to rise 2%-19% annually, and for its non-GAAP EPS to decline 21%-33%. The midpoint of those estimates surpassed analysts' expectations for 6% revenue growth and a 29% decline in earnings.
However, Qualcomm also widened the range of its EPS guidance to account for the Covid-19 outbreak in China. Instead of a typical $0.10 range for its guidance, Qualcomm widened the lower end of its second-quarter guidance by a nickel, from $0.85-$0.95 to $0.80-$0.95.
Source Fool.com
