Qualcomm, Inc. (NASDAQ:QCOM) released its latest quarterly earnings report after closing bell tonight, beating consensus estimates on both the top and bottom lines. The chip maker posted adjusted earnings of $1.04 per share and $5.6 billion in revenue for its second fiscal quarter, against the consensus numbers of 96 cents and $5.34 billion.

Qualcomm Beats Earnings Estimates, Outlook Disappoints

Qualcomm beats earnings guide

Qualcomm’s GAAP earnings were 78 cents per share for the quarter. The chip maker shipped 189 million MSM chips during the quarter and recorded $70.1 billion in device sales, compared to last year’s 233 million chips and $75.8 billion in device sales. Qualcomm said it shipped between 335 million and 339 million 3G/4G devices, compared to last year’s range of 384 million to 388 million. However, the average selling price was higher at between $205 and $211, against last year’s range of $193 to $199.

“Our fiscal second quarter results were driven by stronger than expected performance across our chipset and licensing businesses,” Qualcomm Chief Executive Officer Steve Mollenkopf, said in a statement. “We are pleased with our continued progress in the licensing business, including the recent conclusion of new license agreements in China and the resolution of our dispute with LG Electronics. We are continuing to build momentum into the second half of our fiscal 2016 with traction for our Snapdragon processors in the premium and high tiers and strong execution of our strategic realignment plan.”

Qualcomm’s guidance comes up short

Qualcomm management also provided guidance for its third fiscal quarter. They expect earnings of between 90 cents and $1 per share, compared to the $1.02 per share consensus estimate. They project revenue of $5.2 billion to $6 billion, which stacks up better against the consensus at $5.56 billion. They look for GAAP earnings to be between 68 cents and 78 cents per share. For the full year, management expects adjusted earnings to be flat.

The company expects to ship between 175 million and 195 million MSM chips in the third quarter, marking a significant decline from 225 million chip shipments. The chip maker expects total reported device sales of $52 billion to $60 billion, marking a decline from last year’s $60.4 billion.

Qualcomm shares slumped in after-hours trades, falling by as much as 1.61% to $51.25 per share following tonight’s weak outlook.