Qualcomm Inc. shares turned lower in the extended session Thursday after the chip maker forecast that inventory clearance would persist in the first half of the year, knocking the chip company’s outlook just short of the Wall Street consensus. Qualcomm
shares, which had initially gained 3% after hours, slipped as the company’s earnings call started, closing the extended session down 3%. The stock closed the regular session with a 1.9% decline at $135.85.
On the call with analysts, Qualcomm execs said weaker-than-expected handset demand and inventory drawdown were major headwinds and forecast that inventory clearance would persist in the first half of 2023, impacting results. Qualcomm forecast adjusted earnings of $2.05 to $2.25 a share on revenue of $8.7 billion to $9.5 billion for the fiscal second quarter. Analysts had estimated earnings of $2.29 a share on revenue of $9.56 billion for the second quarter. The company reported fiscal first-quarter net income of $2.24 billion, or $1.98 a share, compared with $3.4 billion, or $2.98 a share, in the year-ago period. The chip maker reported adjusted earnings, which exclude stock-based compensation expenses and other items, of $2.37 a share, compared with $3.23 a share in the year-ago period. Total revenue for the quarter fell to $9.46 billion from $10.7 billio …