By Tae Kim

Qualcomm gave a slightly disappointing outlook for its current quarter. The maker of mobile processors and 5G wireless chipsets shares fell in after-hours trading.

For the March quarter, the chip maker reported earnings per share of $2.85, compared to Wall Street's consensus estimate of $2.82, according to FactSet.

Revenue came in at $10.8 billion, which was above analysts' expectations of $10.6 billion. But Qualcomm forecast a revenue range for the current quarter of $9.9 billion to $10.7 billion -- at the midpoint, that's slightly below the consensus of $10.33 billion.

"As we navigate the current macroeconomic and trade environment, we remain focused on the critical factors we can control -- our leading technology roadmap, best-in-class product portfolio, strong customer relationships and operational efficiencies," Qualcomm CEO Cristiano Amon said in the release.

Qualcomm shares fell 7.3% in Thursday trading.

On Monday, Bernstein analyst Stacy Rasgon reiterated his Outperform rating on Qualcomm shares, citing low valuation. Rasgon has a $185 target for the stock.

"The stock remains very cheap," he wrote. Qualcomm trades at a "40% discount to both the SOX [PHLX Semiconductor index] and S&P, one of the sharpest discounts in many years. In a world where uncertainty increasingly reigns this seems likely to help."

Earlier this month, the Trump administration announced exemptions for some imported tech hardware products -- including smartphones, computers, and other items -- from the current tariff of 145% on China imports. However, chips and electronics are expected to be covered under a new sector tariff that will be announced in the coming weeks, officials have said.

The analyst said the U.S. accounted for just 10% of global smartphone shipments, lowering the impact of any potential future tariffs to the company.

Qualcomm stock is down 3% this year as of Wednesday's close, compared with the 15% decline for the iShares Semiconductor ETF.

Write to Tae Kim at tae.kim@barrons.com

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May 01, 2025 09:45 ET (13:45 GMT)

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