Qualcomm forecasts beats estimates, shares rise as smartphone slump eases

FILE PHOTO: A smartphone with a displayed Qualcomm logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

(Reuters) - Chip designer Qualcomm forecast first-quarter sales and profits above Wall Street targets on Wednesday as a smartphone sales slump finally starts to ease and a renewed contract with Apple helps boost its outlook.

The San Diego, California-based company forecast current-quarter revenue of $9.1 billion to $9.9 billion, with a midpoint above analysts' expectations of $9.2 billion according to LSEG data. Qualcomm predicted current-quarter adjusted profits of $2.25 to $2.45 per share, beating expectations of $2.23 according to LSEG.