Why Qualcomm Stock Is Falling Today
Shares of semiconductor giant Qualcomm (NASDAQ: QCOM) fell as much as 10.5% in Thursday's early trading. After the close Wednesday, the company reported strong earnings for the first quarter of fiscal year 2021 and set up second-quarter guidance targets well above the current Street projections. No, that's not a huge typo. Qualcomm's stock price really did fall amid a flurry of objectively good news.
Qualcomm's first-quarter sales rose 62% year over year to $8.24 billion. Adjusted earnings more than doubled from $0.99 to $2.17 per diluted share. The revenue result was right in line with Wall Street's consensus estimates, but your average analyst would have settled for earnings near $2.08 per share on revenue.
Looking ahead, Qualcomm expects second-quarter sales to rise approximately 46% year over year to $7.6 billion. Adjusted earnings should land near $1.65 per share, an 88% jump from the year-ago period's result. Here, analysts had been expecting revenue of roughly $7.1 billion and earnings in the vicinity of $1.57 per share.
Source Fool.com
