Qualcomm Logs Higher Revenue, Profit in 2Q on Higher Chip Sales

By Kelly Cloonan

Qualcomm logged higher profit and revenue in the second quarter as chip sales rose.

The software chip maker on Wednesday posted a profit of $2.81 billion, or $2.52 a share, for the quarter ended March 30, compared with $2.33 billion, or $2.06 a share, a year earlier. Analysts polled by FactSet had expected earnings of $2.54.

Adjusted earnings per share were $2.85, ahead of estimates of $2.82 a share according to analysts polled by FactSet.

Revenue rose 17% to $10.98 billion. Analysts expected $10.64 billion.

Sales in the company's equipment and services segment, which includes chips, rose around 18% to $9.34 billion. The company's licensing revenue also rose, up 13%.

Chief Executive Cristiano Amon said Qualcomm is navigating the current macroeconomic and trade environment and remains "focused on the critical factors we can control."

For the fiscal third quarter, the company guided for revenue of $9.9 billion to $10.7 billion. Analysts were looking for $10.33 billion. The company said it expects earnings of $2.14 to $2.34 a share, missing Wall Street's expectations for $2.35 a share.

On an adjusted basis, Qualcomm expects third-quarter earnings of $2.60 to $2.80. Analysts expected $2.67 a share.

Shares fall 5.7% to $140 after hours.

Write to Kelly Cloonan at kelly.cloonan@wsj.com