Qualcomm Stock Falls on Lower-Than-Expected Licensing Revenue
Key Takeaways:
* Qualcomm's (QCOM) shares decline 5% in premarket trading after its fiscal Q1 earnings report.
* Revenue and profit exceed Visible Alpha estimates.
* Licensing revenue falls short of forecasts, overshadowing strong overall performance.
Details:
Qualcomm reported revenue of $11.67 billion and earnings per share of $2.83 for its fiscal 2025 first quarter. This surpasses analyst consensus. However, investors are focusing on licensing revenue, which came in at $1.54 billion, slightly below expectations.
Qualcomm licenses its patented technologies to companies such as Apple (AAPL). Licensing revenue accounted for 75% of the chipmaker's segment EBT in Q1, compared to 32% for its larger semiconductor segment.
The company's shares had appreciated 22% over the past 12 months prior to Thursday's decline.