(Reuters) – Qualcomm Inc (QCOM.O) on Wednesday forecast current-quarter revenue largely in line with expectations as it signed more contracts for 5G phones, which use higher-priced chips, at a time when the COVID-19 pandemic has disrupted production channels and led to a fall in demand for smartphones.
FILE PHOTO: A Qualcomm sign is pictured at Mobile World Congress (MWC) in Shanghai, China June 28, 2019. REUTERS/Aly Song
The company also beat Wall Street estimates for second-quarter profit and revenue on the back of higher prices for its mobile chips, sending its shares up 5% in trading after the bell.
Qualcomm forecast total revenue of between $4.4 billion and $5.2 billion for its third quarter. Analysts had estimated revenue of $4.89 billion, according to IBES data from Refinitiv.
However, the company’s outlook was in contrast to many other chipmakers, including Intel Corp (INTC.O) and Texas Instrument Inc (TXN.O), who have either withdrawn or cut their revenue forecasts,…
Source Reuters Tech News
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