Qualcomm (QCOM) unveiled revenue guidance which fell short of analysts’ estimates after markets shut on Wednesday as the telecommunications major posted mixed results for its fiscal third quarter with adjusted earnings surpassing Street estimates while adjusted revenue missed forecasts.
The San Diego, Calif.-based company, which manufactures semiconductors and provides telecommunications equipment, reported revenue of $9.64 billion in the three months ended June 30, up 73% from the corresponding quarter of the prior year.
Adjusted revenue — which excluded the Qualcomm Strategic Initiatives segment, certain share-based compensation, acquisitions, and some tax items — fell to $4.89 billion from $5.61 billion.
Adjusted earnings per share came in at $0.80, down from $1.00 a year earlier but ahead of the Street’s consensus estimate of $0.77 per share.
“We delivered another solid quarter operationally in the midst of slower demand for 4G devices as the market prepares for the global transition to 5G,” Steve Mollenkopf, chief executive of Qualcomm, said. “Our 5G design wins have doubled over the last three months, leaving us extremely well-positioned as 5G ramps in early calendar year 2020.”
For the fourth quarter, the company is targeting revenue of $4.3 billion to $5.1 billion and adjusted earnings per share of $0.65 to $0.75. Analysts polled by Capital IQ were expecting $5.16 billion in revenue and $0.71 in adjusted earnings per share for the fourth quarter.