Qualcomm shares fall on weak first-quarter outlook

Shares of chipmaker Qualcomm fell much than 8% Thursday, a time aft the institution reported anemic first-quarter guidance and said it started a hiring frost successful the existent quarter.

Qualcomm reported fourth-quarter net that were successful enactment with expert estimates of $3.13 per stock connected an adjusted ground and a tiny gross bushed of an adjusted $11.39 cardinal compared to the $11.37 cardinal analysts anticipated, according to Refinitiv.

But the institution called for fiscal first-quarter adjusted net of $2.25 to $2.45 per stock connected $9.2 cardinal to $10 cardinal successful revenue. Analysts polled by Refinitiv had expected net per stock of $3.42 and gross of $12.02 billion.

"The accelerated deterioration successful request and easing of proviso constraints crossed the semiconductor manufacture person resulted successful elevated transmission inventory," the institution said successful the report.

CEO Cristiano Amon stressed connected the company's net telephone that the institution is looking astatine a "temporary cyclical inventory drawdown."

In notes to clients aft the report, respective analysts seemed to hold that Qualcomm would marque it to the different broadside of the headwinds successful a coagulated position.

"Despite the cyclical slowdown, we judge Qualcomm absorption is executing connected its diversification maturation strategy, and we expect Qualcomm is apt to station steadfast maturation trends erstwhile the inventory correction is complete," Canaccord Genuity analysts wrote, maintaining a bargain standing connected the banal and lowering its terms people from $225 to $165.

Piper Sandler analysts maintained an overweight standing but chopped their terms people from $185 to $145, saying they "see the drawdowns arsenic constricted to the December and March quarters."

KeyBanc Capital Markets analysts besides maintained an overweight standing but chopped their terms people from $170 to $150, saying they presumption Qualcomm's results arsenic "disappointing," but "see favorable risk/reward with guardant ests derisked."

-CNBC's Ashley Capoot and Jordan Novet contributed to this report.

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