QUALCOMM Inc.(QCOM) Stock in Decline After a Hefty Wednesday, Here’s The Reason

QUALCOMM Inc.(QCOM), a company engaged in the development and commercialization of foundational technologies for the wireless industry, has declined by 3.03% in aftermarket trading session and consequently is trading at $182.5 at the time of the writing. During Wednesday’s regular trading session, the stock surged by 6.25% and closed the day at $188.2 The decline in the aftermarket has come in the wake of strong earnings results by the company.

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QCOM Q1 2022 Results

On Wednesday, QCOM released the results for the first quarter of the fiscal year 2022. The quarter ended on 26th December 2021. The company generated total revenues of $10.7 billion during the quarter against $8.2 billion for the same quarter of fiscal 2021. The total costs and expenses for the three-month period were $6.8 billion against the total costs of $5.7 billion for the same three-month period of fiscal 2021. The net income generated by the company during the period was $3.3 billion (or basic and diluted EPS of $3.02 and $2.98 respectively) against the net income of $2.4 billion (or basic and diluted EPS of $2.16 and $2.12 respectively) for the same period of fiscal 2021.

Business Outlook for Q2 2022

QCOM also released the business outlook for the second quarter of fiscal 2022. The company estimated the QCT revenue to stand between $8.7 and $9.3 billion during the quarter. The QTL revenue is expected to lie in the range of $1.45 billion to $1.65 billion during the said period. The company believes that the GAAP diluted EPS for the second quarter of fiscal 2022 would stand in the range of $2.39 to $2.59, while the non-GAAP diluted EPS for the period is estimated to lie in the range of $2.8 to $3.

Executive Commentary

While commenting on the results, Cristiano Amon, President, and CEO of QCOM said that the record quarterly results reflect the strong demand for the products of the company. The company is at the beginning of a great opportunity in its history with its addressable market expanding by more than 7 times. It’s one technology roadmap has positioned it as a partner of choice for varied clients.

Future Outlook for QCOM

Stats reveal an optimistic picture for QCOM during the last three months, as it has gained an increase of more than 30% during the period. Looking ahead, the analysts believe that the technical signals are positive for the stock at the moment, and hence, it should be a buy candidate as it is expected to perform strongly in near future.