Scott Marks 2:48 p.m., May 23
Qualcomm Earnings Jump; Stock Plunges on Guidance
Qualcomm stock has plunged 4.49% to $62.64 in after-hours trading today (April 18) after the company reported strong quarterly sales and earnings, but speculators weren't happy with guidance for the current quarter. For its second quarter, the wireless chip maker reported revenue of $4.94 billion and earnings per share of $1.01. Analysts had expected $4.83 billion and 95 cents, respectively. (So-called "analysts' expectations" should be take with a grain of salt with all companies; companies talk down future sales and earnings, and analysts, knowing the ruse, understate expectations. Then the stock pops when results are announced.) In this case, Qualcomm stock is not popping upward despite good gains from a year earlier. Qualcomm's current quarter forecast of $4.45 billion to $4.85 billion in revenue and 83 cents to 89 cents earnings per share is below analysts' expectations.