SAN DIEGO – Chipmaker Qualcomm Inc. cut its outlook Wednesday, saying sales of its Snapdragon processor are down and it's not doing as much business with a large customer.
The company's shares fell $1.80, or 2.6 percent, to $67.14 in after-hours trading.
Qualcomm is now forecasting an adjusted profit of $4.60 to $5 per share and $25 billion to $27 billion in revenue for its current fiscal year, which ends in September. It had previously called for income of $4.85 to $5.05 per share on $26.3 billion to $28 billion in revenue.
FactSet says analysts are projecting a profit of $5 per share and revenue of $27.16 billion, on average.
The company made similar comments after its fiscal first quarter, saying the Snapdragon processor wouldn't be used in a new version of a major device made by a large customer and changing sales patterns were reducing demand for the device.
In February, Chinese regulators fined Qualcomm about $975 million, saying it charged companies unreasonable license fees. The company said its net income plunged 46 percent to $1.05 billion, or 63 cents per share, during the first three months of the year. Excluding the fine and other one-time charges Qualcomm said it earned $1.40 per share. Its revenue climbed 8 percent to $6.89 billion.
Analysts expected net income of $1.33 per share and $6.8 billion in revenue, according to Zacks Investment Research.
Qualcomm expects a profit of 85 cents to $1 per share and $5.4 billion to $6.2 billion in its fiscal third quarter.
According to Zacks, analysts had forecast net income of $1.13 per share and $6.48 billion in revenue.
Qualcomm shares rose 37 cents to $68.94 Wednesday. They are down about 7 percent in 2015, while the Standard & Poor's 500 index has gained about 2 percent. The stock has fallen 14 percent over the last 12 months.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on QCOM at http://www.zacks.com/ap/QCOM
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