Shares of Qualcomm (NASDAQ:QCOM) were trading sharply lower after an initial surge following the release of its Q1 earnings report and on-track forward guidance for Q2.
The company reported a beat on both EPS and sales while also announcing strong guidance in preparation for the second quarter. Management highlights their second consecutive quarter of record results coupled with greater than 60% year-over-year earnings before tax (EBT) growth. In particular, the earnings results showcased a 41% year-over-year growth in Qualcomm CDMA Technologies (QCT) revenues.
“Our record quarterly results reflect the strong demand for our products and technologies, with QCT revenues exceeding those of any fabless semiconductor company”, said Qualcomm President and CEO Cristiano Amon. Notably, the CEO sees the company at, “one of the largest opportunities in our history, with our addressable market expanding by more than seven times to approximately $700 billion in the next decade”.
Qualcomm Inc. develops and licenses wireless technology, designs chips for smartphones, and is a leader in 5G network technology. The company’s key patents revolve around CDMA and OFDMA technologies, which are standards in wireless communications that are the backbone of all 3G and 4G networks.
At the time of publication, shares of Qualcomm were trading 2.50% lower during after hours at $183.50. The stock has a 52-week low of $122.16 and a 52-week high of $193.58.
