Summary: Qualcomm reported a 12% revenue decline for the fourth quarter of 2022, earning $9.46 billion, lower than Refinitiv analyst expectations. The company attributes its poor performance to the macroeconomic environment and expects lower future revenue and earnings per share.
Qualcomm, the giant chip maker responsible for several of the high-end smartphones and computers in the market today, reported a revenue decline of 12% YoY and its projection for the future is equally underwhelming.
The multinational company earned a revenue of $9.46 billion in the fourth quarter of 2022, which is lower than the expectations of analysts at Refinitiv. It said that the macroeconomic environment and increase in the number of distribution channels caused its poor performance.
For the future, Qualcomm it expects to reach $2.25 per share and a revenue of $9.55 billion, these two numbers are lower than what analysts expected, according to a CNBC report on the matter.
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During the quarter under focus, its smartphone chips, radio frequency front-end components, automotive chips and internet of things devices department made sales of $7.89 billion. However, its smartphone revenue accounted for $5.75 billion of that earnings, which is bigger than expectations and impressive, considering that smartphone shipments fell during that time.
Meanwhile, its licensing section which sells rights for other companies to use its cellular patents generated a revenue of $1.52 billion, which is lesser than analysts expectations.
Qualcomm will continue to look for ways to cut costs, although, it has not said anything about the possibility of more layoffs in 2023. It had been among companies that reduced its workforce and froze hiring in 2022 to weather the economic storm.
In related news, the Samsung Galaxy S23 series has just launched and they bring the new Qualcomm Snapdragon 8 Gen 2 chipset into the market.
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