Qualcomm shares gain after bright outlook
(Associated Press Via Acquire Media NewsEdge) Demand for smartphones is lifting Qualcomm Inc. The maker of chips for mobile handsets reported better-than-expected quarterly results and raised its forecast.
THE SPARK: Adjusted earnings for the fiscal first quarter, which ran through Dec. 30, came to $1.26 per share, beating the $1.13 per share expected by analysts polled by FactSet. Revenue rose 29 percent to $6.02 billion, topping the $5.90 billion expected by analysts.
For the year through September, Qualcomm raised its profit guidance by 13 cents per share to $4.25 to $4.45. It also raised its annual revenue guidance by $400 million to a range of $23.4 billion to $24.4 billion.
Analysts had expected profit of $4.32 per share on revenue of $23.6 billion.
THE BIG PICTURE: Qualcomm, which is based in San Diego, makes chips to help mobile devices connect over 3G and 4G LTE cellular networks. It also makes Snapdragon processors that turn devices into mini computers. Booming demand for mobile devices has increased its profit.
THE ANALYSIS: "We continue to see little to assail Qualcomm's increasingly dominant position in the mobile industry, particularly as mobile computing begins to supplant the traditional computing markets," wrote Pacific Crest analyst James Faucette in a research note Wednesday after the company released its quarterly results. He has an "Outperform" rating on the shares and a $70 price target.
Qualcomm "is building a significant lead versus the competition," said Sterne Agee analyst Vijay Rakesh. He raised his price target on the shares to $74 from $71.
SHARE ACTION: Up $2.94, or 4.6 percent, at $66.47 on Thursday. That's near the top end of the 52-week range between $53.09 and $68.87.
(c) 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
[ Back To TMCnet.com's Homepage ]