What happened
Top mobile technology equipment supplier Qualcomm (QCOM 0.73%) reported its latest set of earnings on Friday, and the market didn't react all that positively. Investors traded the company's shares down by 0.6%, which wasn't a disastrous reaction, but at the same time hardly encouraging.
So what
Qualcomm's first quarter of fiscal 2023 saw the California-based company earn $9.46 billion in revenue, which was a 12% decline from the same period the previous year. A steeper tumble was recorded on the bottom line, with non-GAAP (adjusted) net profit plummeting 27% to $2.68 billion, or $2.37 per share.
This meant a mixed quarter for Qualcomm, as analysts tracking the stock were collectively estimating it would book $9.6 billion on the top line yet only $2.36 in per-share, adjusted net income.
Qualcomm's declines were attributed to what it characterized as a "challenging environment," given such factors as macroeconomic weakness. The company suffered an 18% revenue decline in its most significant hardware segment, handsets, which brought in $7.89 billion for the quarter. Qualcomm's technology licensing activities also fell at nearly the same rate, slipping at a 16% clip to hit $1.52 billion.
Now what
CEO Cristiano Amon struck a "we'll-get-through-this together" tone in the earnings release, saying: "The long-term trends driving demand for our differentiated technologies and solutions that enable digital transformation are intact. We are confident in our ability to navigate the near term and remain focused on executing our diversification strategy."
The company proffered guidance for its current second quarter. It's forecasting $8.7 billion to $9.5 billion in revenue, filtering down into a per-share, adjusted net income of $2.05 to $2.25.
