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Qualcomm beats expectations, but its stock wobbles on light revenue forecast
- Chipmaker Qualcomm Inc. exceeded analysts' expectations in its second-quarter earnings report, attributing the success to revenue growth and diversification strategies beyond the smartphone market.
- Despite beating earnings estimates, Qualcomm's stock experienced a slight decline in after-hours trading due to a revenue forecast for the current quarter that fell short of Wall Street's expectations.
- Qualcomm reported earnings of $2.85 per share, higher than the estimated $2.82, with revenue increasing by 15% to $10.84 billion, surpassing the expected $10.66 billion.
- The company's net income was $2.81 billion, reflecting the impact of various charges and expenses, compared to $2.33 billion in the same period last year.
- Qualcomm's CFO assured investors of minimal impact from U.S. trade tariffs, stating that their diversified global supply chain mitigates potential risks.
- The company faces pressures despite tariff concerns, with a revenue forecast slightly below expectations for the third quarter while its earnings forecast exceeded estimates.
- Qualcomm continues to rely on the smartphone market, but is working on diversification efforts through its automotive and IoT businesses due to the anticipation of losing Apple as a customer.
- Sales from Qualcomm's automotive and IoT businesses witnessed significant growth, contributing to the overall 18% revenue increase in its chip unit division.
- Despite the positive performance, Qualcomm's stock dipped by 5% in extended trading following the revenue guidance announcement, marking a 3% decrease year-to-date.
- Analysts maintain a positive outlook on Qualcomm's stock, citing its affordability and potential for growth compared to others in the semiconductor industry.
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