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Qualcomm Stock Drops as Licensing Revenue Outweighs Record Sales
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Key points
- Qualcomm shares fell 5% in previous market trading Thursday the day after the company’s below-estimated license revenue offset record quarterly sales.
- The chip maker reported revenue and profits higher than the visible alpha estimates for the first quarter of fiscal 2025.
- However, investors seem to focus on Qualcomm’s licensing revenue, which is forecast.
Qualcomm(QCOM) The day after the company’s below estimates of license revenue offset quarterly sales, the stock fell 5% in its previous trading on Thursday.
The chip maker reported revenue of $11.67 billion in the first quarter of fiscal 2025, up 17% year-on-year, with profit of $3.18 billion, or $2.83 per share, a high-visible Alpha estimate.
However, investors appear to focus on Qualcomm’s licensing (QTL) revenue of $1.54 billion, which is below the estimated votes. Qualcomm licenses its patented technology to companies including Apple (AAPL), QTL is a key business for chip manufacturers, with earnings before tax (EBT) of 75% of revenue in the first quarter. By contrast, the larger semiconductor segment QCT accounts for 32% of segment revenue.
Qualcomm shares have risen 22% over the past 12 months.
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