Published on 3 Feb 2023 on Zacks via Yahoo Finance

Qualcomm (QCOM) Beats on Q1 Earnings, Falters on Revenues

Qualcomm Incorporated QCOM reported mixed first-quarter fiscal 2023 results driven by a challenging macroeconomic environment and COVID headwinds in China, resulting in weaker-than-expected demand and elevated inventory levels. While the top line missed the Zacks Consensus Estimate, the bottom line surpassed the same on the strength of the business model, revenue diversification and the ability to respond proactively to the evolving market scenario. However, shares declined sharply post earnings release owing to a soft outlook due to market uncertainty and high channel inventory levels.

Net Income

On a GAAP basis, net income in the December quarter declined to $2,235 million or $1.98 per share from $3,399 million or $2.98 per share in the prior-year quarter. The decrease in GAAP earnings was primarily attributable to top-line contraction.Quarterly non-GAAP net income came in at $2,684 million or $2.37 per share compared with $3,686 million or $3.23 per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by a couple of cents.