Qualcomm posts higher revenue but misses Street

The Qualcomm booth at the 2014 International CES.
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Qualcomm posted fiscal second-quarter revenue on Wednesday that missed expectations as it wrestles with a smartphone market that is losing steam and shifting to China, sending its shares lower.

The chipmaker reported second-quarter revenue of $6.37 billion, up 4 percent from the year-ago period. Analysts on average had expected second-quarter revenue of $6.479 billion, according to Thomson Reuters I/B/E/S.

Qualcomm had second-quarter net income of $1.96 billion, up 5 percent. GAAP diluted earnings per share were $1.14. Its non-GAAP earnings per share were $1.31, above its previous forecast of between $1.15 and $1.25. Analysts on average expected $1.22.

A customer tries an Apple product at the company's Fifth Avenue store in Midtown Manhattan on April 22, 2014 in New York City.
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Qualcomm said it now expects full-year non-GAAP earnings per share between $5.05 and $5.25. It had previously forecast 2014 EPS between $5.00 and $5.20.

It said revenue in the fiscal third quarter, which ends in June, would be between $6.2 billion and $6.8 billion. Analysts on average expected third-quarter revenue of $6.592 billion.

Qualcomm shares were down 3.36 percent in extended trading after closing, up 0.12 percent at $80.71 on Nasdaq.

—By Reuters