Shares of Qualcomm Inc. (QCOM) gained 1.3% to close Thursday’s trading at $49.52, as investors shrugged off the chipmaker’s latest quarterly sales numbers, which included a 20% drop in revenue and guidance of a similar decline in the current fiscal quarter.
Qualcomm said revenue dipped slightly more than expected to $4.8 billion in its fiscal first quarter ended Dec. 30. Earnings in the quarter on an adjusted basis were $1.20 a share, surpassing analysts’ estimates of $1.09.
In the year-earlier period, Qualcomm earned 98 cents a share on sales of $6.07 billion.
Qualcomm’s latest results were hurt in part by weakness in sales of lower-tier units in China as the economy there slowed, Chief Financial Officer George Davis told analysts on an investor call Wednesday.
The company said it expects adjusted fiscal second-quarter earnings per share of between 65 cents and 75 cents on revenue of between $4.4 billion and $5.2 billion. Analysts had been predicting earnings of 68 cents a share on revenue of $4.8 billion.
Qualcomm shares, which gained 1.6% in regular trading Wednesday, rose another 2.5% in after-hours trading following the results. However, the company’s stock is still down by roughly a third from its high point of $76.50 reached last September.
Shares of fellow chipmaker Advanced Micro Devices Inc. (AMD) soared nearly 20% on Wednesday after the company posted solid quarterly earnings and said 2019 margins and revenue likely would top forecasts, defying investor gloom for the sector following Nvidia Corp.’s (NVDA) sales warning earlier this week.