Qualcomm (NASDAQ:QCOM) shares plunged after the San Diego-based chipmaker reported first-quarter results that topped expectations.
For the period ending December 26, Qualcomm said it earned $3.23 per share on $10.7 billion in revenue, up 30% year-over year. A consensus of Wall Street analysts expected Qualcomm to earn $3 per share on $10.43 billion in revenue during the period.
Aiding the results were strength in the Handset division, which saw revenue rise 42% year-over-year to $5.98 billion, as well as the company’s Internet of Things unit, which jumped 41% year-over-year to $1.47 billion.
Qualcomm (QCOM) shares fell more than 7% to $173.60 in extended-hours trading, after rising more than 6% during the regular session.
“Our record quarterly results reflect the strong demand for our products and technologies, with QCT revenues exceeding those of any fabless semiconductor company,” said Chief Executive Cristiano Amon in a statement. “We are at the beginning of one of the largest opportunities in our history, with our addressable market expanding by more than seven times to approximately $700 billion in the next decade. Our one technology roadmap positions us as the partner of choice for both mobile and the connected intelligent edge.”
During the quarter, Qualcomm returned $1.9 billion to shareholders, including $1.2 billion in stock buybacks.
For the second-quarter Qualcomm said it expects to generate between $10.2 billion and $11 billion in revenue, with earnings coming in between $2.80 and $3 per share. Analysts expected the company to earn $2.48 per share on $9.54 billion in revenue.
Qualcomm will hold an earnings call at 4:45 P.M. EST to discuss the results.
Last month, Qualcomm (QCOM) was picked by Goldman Sachs as one of the top stock picks for tightening financial conditions, due to its strong free cash flow, high margins and rock-solid balance sheet.