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Investing.com -- Qualcomm reported quarterly results that topped Wall Street expectations but a weaker-than-expected revenue forecast for the current quarter sent its shares down over 5% in premarket trading Thursday.
The chipmaker posted second-quarter earnings per share of $2.85, above analysts’ average estimate of $2.80.
Revenue came in at $10.84 billion, beating expectations of $10.55 billion.
“As we navigate the current macroeconomic and trade environment, we remain focused on the critical factors we can control," CEO Cristiano Amon said.
For the third quarter, Qualcomm (NASDAQ:QCOM) said it expects EPS between $2.60 and $2.80, compared with analysts’ forecast of $2.66.
The company projected revenue of $9.9 billion to $10.7 billion, the midpoint of which is below the consensus estimate of $10.33 billion.
Qualcomm repurchased $1.75 billion in shares and distributed $938 million in dividends during the quarter, while raising its full-year 2025 cash return target to 100% of free cash flow (FCF).
"Guidance was in line with expectations, however we flag increasing risks with China slowing, Apple (NASDAQ:AAPL) shifting in-house, and slower sequential trends in non-handsets," Bank of America analysts led by Tal Liani said in a note.
Separately, Bernstein analysts described the results as "fine" but added that "they seem to have been a bit below buy-side expectations that might have been rising somewhat into the print due to recent peer reports."
"If investors are not buying the stock at least management is, calling for 100% FCF return this year through elevated buybacks given the valuation of the shares (which remains extremely attractive at ~12x EPS)," they added.
Pratyush Thakur contributed to this report.