Qualcomm jumps after strong guidance, earnings beat

  • Qualcomm posted better-than-expected earnings, but revenue fell short.
  • The chipmaker issued strong guidance for the second quarter.
People crowd into the Qualcomm booth to view a series of new products during the annual Consumer Electronics Show on Jan. 4, 2017 in Las Vegas.
George Rose | Getty Images
People crowd into the Qualcomm booth to view a series of new products during the annual Consumer Electronics Show on Jan. 4, 2017 in Las Vegas.

Shares of Qualcomm rose more than 2 percent in extended trading on Wednesday after the chipmaker issued a positive second-quarter forecast.

The semiconductor company said it expects adjusted second-quarter earnings per share of between 65 cents and 75 cents on revenue of between $4.4 billion and $5.2 billion. Wall Street had forecast earnings of 68 cents per share on revenue of $4.8 billion.

For the fiscal first quarter, Qualcomm reported better-than-expected earnings, but revenue fell short.

Here's how the company did compared with what Wall Street expected:

  • Earnings per share: $1.20, vs. $1.09 forecast by Refinitiv
  • Revenue: $4.82 billion, vs. $4.9 billion forecast by Refinitiv

CEO Steve Mollenkopf said the earnings beat was "driven by strong product leadership and operating expense management." Mollenkopf also said Qualcomm is continuing to pursue its strategic objectives such as 5G.

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