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Qualcomm Inc. shares dropped in the extended session Wednesday, after the chip maker's revenue came in slightly lower than expected while earnings topped expectations.
Qualcomm reported fiscal first-quarter net income of $2.46 billion, or $2.12 a share, compared with $925 million, or 80 cents a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation expenses and other items, were $2.17 a share, compared with 99 cents a share in the year-ago period. Revenue rose to $8.24 billion from $5.08 billion in the year-ago quarter.
Analysts surveyed by FactSet had forecast $2.10 a share on revenue of $8.27 billion, based on Qualcomm's forecast of $1.95 to $2.15 a share on revenue of $7.8 billion to $8.6 billion.
Shares fell more than 8% in after-hours trading immediately following release of the results, following a 1.5% decline in the regular session to close at $162.30.
"We delivered an exceptional quarter, more than doubling earnings year-over-year due to strong 5G demand in handsets and growth in our RF front-end, automotive and IoT adjacencies, which drove record earnings in our chip business," Qualcomm chief executive Steve Mollenkopf said in a statement.
Qualcomm forecast adjusted second-quarter earnings of $1.55 to $1.75 a share on revenue of $7.2 billion to $8 billion, while analysts were estimating $1.58 a share on revenue of $7.11 billion.
In early January, Qualcomm said Christiano Amon will succeed Steve Mollenkopf as the company's CEO on June 30. Then, a week later, Qualcomm said it was acquiring chip designer Nuvia Inc. for $1.4 billion.
Over the past 12 months, Qualcomm shares are up 88%, compared with a 65% gain in the PHLX Semiconductor Index an 18% rise in the S&P 500 index and a 47% gain in the tech-heavy Nasdaq Composite Index