The stock was up more than 3% after hours, in addition to a nearly 5% rise during trading on Wednesday.Wall Street had anticipated earnings per share of $0.78 on revenue of $5.025 billion based on Refinitiv consensus estimates. However, it's difficult to compare reported earnings to analyst estimates for Qualcomm's Q2, as the coronavirus pandemic continues to hit global economies and makes earnings impact difficult to assess.
"Our guidance for the third quarter of fiscal 2020 being based on a planning assumption that there will be an approximate 30% reduction in handset shipments relative to our prior expectations," according to a note in Qualcomm's press release. Qualcomm shipped 129 million modem chips during the quarter, and predicts to sell between 125 million and 145 million in the June quarter. Qualcomm is the leading maker of 5G chips and has a lot of related patents, so its results shed some light into how the rollout of 5G networks is tracking around the world.
The chip maker is also being closely watched because it sells parts and licenses technology to most of the world's top smartphone makers. In its third fiscal quarter, Qualcomm is expecting earnings per share of between $0.60 and $0.80, about 30 cents less than it would have been due to the coronavirus pandemic. It also expects revenue in the June quarter to land between $4.4 billion and $5.2 billion.
So unemployed people can't buy new phones....weird...