Qualcomm shares fell 8% after announcing that its fiscal first-quarter sales were just below analysts’ expectations. Qualcomm, the world’s largest smartphone chip maker, announced that the sales increased 63% to $8.24 billion year-over-year, and it generated adjusted revenue of $8.23 billion, compared to a profit forecast of $8.27 billion, while its adjusted earnings grew 199% to $2.17 per share, compared to the $2.10 Wall Street analysts had expected.
The company’s new president, Christian Amon, said that had it not been for the severe shortage around the world of semiconductors used in chips, revenues would have been much higher, as the demand for computer chips, which power computers, cars and many other devices, to the point that suppliers in Asia cannot meet it, but the company expects things to return to normal later in 2021 as the production capacity needed to make up for the shortfall is determined.
However, both revenues and profits showed strong year-over-year growth, mainly due to the boom in the electronics sector due to the pandemic at a time when the global economy is in a major crisis and people continue to stay at home.
Qualcomm said it aims to generate $7.2 billion to $8 billion in sales this quarter, well above Wall Street expectations. It is reported that last month Qualcomm appointed Christian Amon as CEO of the company after Steve Mollenkopf, who remained CEO of the company for 7 years.