(Reuters) – Qualcomm Inc forecast third-quarter revenue and profit below Wall Street estimates on Wednesday on worries it will take longer for the smartphone industry to exhaust the excess supply before fresh orders start flowing in.
The company forecast revenue between $8.1 billion and $8.9 billion. Analysts polled by Refinitiv expected revenue of $9.14 billion.
It expects adjusted earnings per share to be between $1.70 and $1.90, compared to analysts expectations of $2.16.
The company said its forecast includes the “continued impact of the macroeconomic headwinds, weaker global handset units and channel inventory drawdown”.
It also said a larger-than-normal sequential decline in its chip revenue forecast was mainly due “to the timing of purchases by a modem-only handset customer”.
The company forecast revenue for the segment to be between $6.9 billion and $7.5 billion.
(Reporting by Chavi Mehta in Bengaluru and Jane Lanhee Lee in Oakland, California; Editing by Arun Koyyur)
