Companies /Technology

Qualcomm Inc

NASDAQ: QCOM Semiconductors
$164.19
▼ $0.59 (−0.36%) today
Markets closed · 6:56pm ET

Q2 2023 Earnings

Reported May 3, 2023, 4:04pm ET · SEC source
$2.15
Beat +0.00%
EPS · est. $2.15
$9.3B
Beat +1.94%
Revenue · est. $9.1B
+3.5%
Beating market
QCOM vs S&P since report
1 quarter
Consecutive EPS misses

Market Reaction

% change · around the report
−4%0+4%May 3May 4report 4:04pm ETearnings−0.5%−2.1%
−4%0+4%May 3May 4earnings−0.5%−2.1%
QCOM −2.1%S&P 500 −0.5%
−4%0+4%May 3May 4report 4:04pm ETearnings−0.1%−2.1%
−4%0+4%May 3May 4earnings−0.1%−2.1%
QCOM −2.1%NASDAQ −0.1%
−4%0+4%+8%May 2May 11report 4:04pm ETearnings+1.3%−3.5%
−4%0+4%+8%May 2May 11earnings+1.3%−3.5%
QCOM −3.5%S&P 500 +1.3%
−4%0+4%+8%May 2May 11report 4:04pm ETearnings+2.9%−3.5%
−4%0+4%+8%May 2May 11earnings+2.9%−3.5%
QCOM −3.5%NASDAQ +2.9%
−5.54%
Day of report
+2.06%
Next session
−2.36%
One week
+9.18%
30 days

S&P 500 over the same 30 days: +5.65%.

Did QCOM Beat Earnings? Q2 2023 Results

Qualcomm matched Wall Street's earnings expectations while edging past revenue estimates in its fiscal second quarter, though the headline numbers masked a steep year-over-year deterioration driven by a punishing smartphone downturn. The chipmaker reported non-GAAP EPS of $2.15, in line with the $2.15 consensus, while revenue of $9.28 billion came in roughly 1.94% above estimates, yet still fell 16.9% from the year-ago period as weak global handset demand and persistent channel inventory drawdowns hammered its core QCT semiconductor segment, which saw revenues slide 17% to $7.94 billion. Automotive remained a rare bright spot, climbing 20% year-over-year to $447 million, underscoring Qualcomm's push to diversify beyond smartphones, a strategy reinforced by its recently announced acquisition of Israeli auto-chip maker Autotalks. Shares fell sharply following the results as management guided Q3 revenues to $8.10 billion to $8.90 billion, with non-GAAP EPS of $1.70 to $1.90, citing a notable sequential QCT revenue decline tied to purchase timing by a key modem-only customer and little sign of near-term recovery in China handset demand.

Key Takeaways
  • Macroeconomic headwinds and weaker global handset demand drove 17% YoY revenue decline
  • Channel inventory drawdown across handset and IoT segments
  • QCT Automotive revenue grew 20% YoY, the only growth area within QCT
  • Restructuring and restructuring-related charges of $212 million in the quarter

“As we navigate this challenging environment, we remain focused on the critical factors we can control to emerge stronger from this downturn – our leading technology roadmap, best-in-class product portfolio, strong customer relationships and operational efficiencies.”

Qualcomm CEO, on the earnings call

Forward Guidance & Outlook

Qualcomm guided Q3 FY23 total revenues to $8.1B–$8.9B, with Non-GAAP diluted EPS of $1.70–$1.90 and GAAP diluted EPS of $1.24–$1.44. QCT revenues are expected at $6.9B–$7.5B and QTL revenues at $1.15B–$1.35B. The midpoint of guidance reflects continued macroeconomic headwinds, weaker global handset units, and channel inventory drawdown, as well as a larger-than-normal sequential decline in QCT revenues primarily due to the timing of purchases by a modem-only handset customer.

QCOM YoY Financials

Q2 2023 vs Q2 2022 · SEC filings Q2 2022 Q2 2023
$0$4.0B$8.0B$12.0B$11.2B$9.3BRevenue$6.5B$5.1BGross Profit$3.9B$2.1BOperating Income$2.9B$1.7BNet Income
$0$4.0B$8.0B$12.0BRevenueGross ProfitOperating IncomeNet Income

QCOM Revenue by Segment

QCT$7.9B−17.0%
Handsets$6.1B−17.0%
IoT$1.4B−24.0%
QTL$1.3B−18.0%
Automotive$447.0M+20.0%

Figures from SEC filings and company reports. Not investment advice.