Why Qualcomm Stock Fell 9% Despite Beating Earnings Estimates

Given its overall fiscal fourth-quarter numbers posted after Wednesday's close, Qualcomm (NASDAQ: QCOM) shares should have soared on Thursday. Although the chipmaker's revenue fell 7% year over year to $10.4 billion, the dip was expected and came in above analysts' estimates of $10.1 billion. The company also earned $2.17 per share, down from $3 a year earlier, but slightly better than the $2.16 per share analysts had anticipated.

Yet Qualcomm shares cratered following the release of the company's Q4 results, falling nearly 14% at one point on Thursday before paring its loss for the day to just under 10%.

What gives? A closer look shows its quarterly figures -- as well as guidance for the first quarter now underway -- are the culprit.

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