Qualcomm Slides On Weak Second-quarter Outlook

Shares of Qualcomm Inc. slid on Wednesday after the chip maker issued a weak second-quarter outlook amid ongoing legal and regulatory challenges. Qualcomm reported its first quarter earnings fell to $700 million, or 46 cents a share, from $1.5 billion, or 99 cents a share, a year earlier. On an adjusted basis, the company would have earned $1.19 a share. Revenue rose 4% to $6 billion. Analysts surveyed by FactSet had forecast Qualcomm to report earnings of $1.18 a share on revenue of $5.12 billion. Apple Inc. earlier this month filed a suit against Qualcomm for allegedly leveraging its monopoly position to demand onerous royalty rates. The Federal Trade Commission last week also filed a complaint against the company for anticompetitive practices, including imposing unfair terms for the use of its patents. In the second quarter, Qualcomm projected adjusted EPS of $1.04 and revenue of $5.6 billion, below analysts' forecast of $1.19 a share on revenue of $5.9 billion. Qualcomm shares fell 2.4% after hours.