Earnings of Qualcomm (QCOM) Q4 2022

Cristiano Amon, president and CEO of Qualcomm, speaks during the Milken Institute Global Conference on May 2, 2022 in Beverly Hills, California.

Patrick T. Fallon | AFP | Getty Images

Qualcomm shares fell 7% during extended trading Wednesday after the chip maker reported fourth-quarter fiscal earnings in line but offered little guidance for the first quarter.

Qualcomm also said it implemented a hiring freeze early in the current quarter.

Here’s how the company did it:

  • I earn: $ 3.13 per share, adjusted, versus $ 3.13 per share as analysts predicted, according to Refinitiv.
  • Income: $ 11.39 billion, adjusted, versus the $ 11.37 billion forecast by analysts, according to Refinitiv.

Overall revenue grew 22% year-over-year in the quarter ended September 25, according to a statement.

As for the guidelines, Qualcomm asked for first quarter fiscal adjusted earnings of $ 2.25 to $ 2.45 per share on $ 9.2 billion to $ 10 billion in revenue. Analysts interviewed by Refinitiv had expected earnings per share of $ 3.42 and revenue of $ 12.02 billion.

“Given the uncertainty caused by the macroeconomic environment, we are updating our guide for 3G / 4G / 5G phone volumes for calendar year 2022 from a year-over-year average to single-digit percentage decline, to a low-to-two percent decline. figures, Qualcomm said in the report.

“The rapid deterioration in demand and the easing of supply constraints in the semiconductor industry have led to high channel inventories.”

The revenue of Qualcomm CDMA Technologies, or QCT category, which includes smartphone chips, radio frequency front-end components, automotive chips and Internet of Things devices, was $ 9.9 billion. It increased by 28% and is more than the consensus of $ 9.87 billion among analysts surveyed by StreetAccount.

Within the QCT segment, mobile phone revenues were $ 6.57 billion, up 40% and a hair below StreetAccount’s consensus of $ 6.59 billion. Automotive chips grew 58% year-on-year to $ 427 million. Qualcomm’s IoT business, which produces low-power chips for connected devices, grew 24% to $ 1.92 billion. RF front-end chips fell 20% to $ 992 million.

Qualcomm Technology Licensing, or QTL, Qualcomm’s other major unit that encompasses licensing costs related to 5G and other technologies the company produces, generated revenue of $ 1.44 billion, which increased by 8 billion. % but less than StreetAccount’s consensus of $ 1.58 billion.

In a phone call with investors on Wednesday, CEO Cristiano Amon said the semiconductor industry is facing macroeconomic headwinds “from which we are not immune”. He added that the company has already implemented a hiring freeze and is ready to further reduce operating expenses if necessary.

“We are in a strong position to handle short-term headwinds,” said Amon.

A spokesperson told CNBC that the hiring freeze was implemented in early fiscal year 2023.

During the quarter, Qualcomm said it extended a patent licensing agreement with Samsung until 2030. And Arm, which supplies the chip architectures used by Qualcomm, filed a lawsuit against Qualcomm for breach of license agreements and violation of the brand name.

Despite the after-hour move, Qualcomm shares have fallen 37% so far this year, while the broader S&P 500 index has fallen 20% over the same period.

Executives will discuss the findings with analysts in a conference call starting at 4:45 pm ET.

This is breaking news. Please check back for updates.

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Correction: Updated to reflect Qualcomm posted revenue of $ 6.57 billion. An earlier version rounded up to $ 6.6 billion.

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