Qualcomm (QCOM) shares fell about 7% early Thursday as investors reacted to a softer-than-expected outlook for the December quarter, even though fiscal fourth-quarter results beat estimates: non-GAAP earnings of $2.17 per share versus $2.16 expected, and revenue of $10.32 billion to $10.44 billion. Handset chip revenue dropped 26% year over year to $5.14 billion, reflecting higher memory costs and lower modem demand as Apple develops its own technology. Qualcomm guided to adjusted earnings of $2.15 to $2.35 per share, with the midpoint below analyst estimates, raising concerns about near-term growth. Automotive revenue rose nearly 89% year over year to about $1.99 billion, a counterpoint that highlights efforts to reduce dependence on smartphone-related sales.
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