Qualcomm Guides Q2 EPS $2.45–$2.65, Revenue $10.2–$11B Below Forecast
Qualcomm shares fell 18% over the past year and 20% year-to-date after management guided Q2 adjusted EPS of $2.45–$2.65 and revenue of $10.2–$11.0 billion, both below analyst forecasts. Jim Cramer warned that memory constraints undermine Qualcomm’s edge against competitors like Apple.
1. Financial Guidance and Share Performance
Qualcomm has experienced an 18% decline in its share price over the past year and a 20% drop year-to-date, reflecting investor concerns about growth prospects and recent profit warnings.
2. Q2 Earnings Guidance Miss
For the second quarter, management guided adjusted EPS of $2.45–$2.65 and revenue of $10.2–$11.0 billion, both figures falling short of analysts’ projections of $2.89 per share and $11.11 billion, raising questions about near-term profitability.
3. Memory Constraints Affect Competitiveness
Commentary stressed that memory capacity is a critical differentiator in the semiconductor sector, with shortages potentially hindering Qualcomm’s ability to compete against rivals such as Apple, which continue to invest heavily in memory features.