Qualcomm shares sink as handset chip sales miss Wall Street
What's new: Smartphone chip revenue fell 26% to $5.14 billion, while the company forecast first-quarter sales above estimates.
Qualcomm shares fell in extended trading after the chipmaker's core smartphone business missed Wall Street expectations, overshadowing quarterly revenue that topped estimates. Fourth-quarter adjusted revenue slipped 7% from a year earlier to $10.44 billion, while handset revenue dropped 26% to $5.14 billion, below analysts' forecasts. The company pointed to weak smartphone demand as higher memory costs pushed up device prices. Qualcomm projected first-quarter revenue of $10.4 billion to $11.2 billion, with the midpoint above estimates, and said its chip segment should also beat expectations. CEO Cristiano Amon said Android handset sales had started to recover, while automotive revenue jumped 89% and data-center revenue reached $650 million.