This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Qualcomm Guides Higher

Qualcomm (QCOM - Get Report) raised fiscal second-quarter targets, citing a surge in cell phone sales and chip demand.

The San Diego-based wireless tech titan raised guidance for the current quarter ending March 26, calling for pro forma net income of 40 to 41 cents a share on sales of about $1.78 billion. Analysts were looking for an adjusted profit of 36 cents a share on $1.71 billion in revenue, according to Thomson First Call.

New cell phones were more popular than Qualcomm initially expected in the prior quarter ending in December. The company says 67 million code division multiple access, or CDMA, phones were sold last quarter, about 6 million more than originally expected.

This translates to about $66 million in additional revenue to be booked in the current quarter, says JP Morgan Chase analyst Ehud Gelblum, who estimates that Qualcomm gets a 4.6% royalty from each handset sold. Gelblum has a buy rating on the stock.

Chip sales for the fiscal second quarter also seem to be stronger than previously expected. Qualcomm says chip shipments will reach about 48 million, beating prior targets by about 2.5 million. Gelblum estimates the upside will contribute about $50 million more to second-quarter top line, based on an average selling price of $20 a chip.

The tech shop also raised its quarterly dividend to 12 cents a share from 9 cents.

Qualcomm's shares rose 96 cents to $48.20 in late-morning trading Tuesday.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
QCOM $69.58 0.51%
AAPL $131.07 -1.20%
FB $81.07 -1.00%
GOOG $553.90 -0.26%
TSLA $231.09 -0.20%

Markets

DOW 18,089.92 +51.95 0.29%
S&P 500 2,113.33 +4.41 0.21%
NASDAQ 5,057.1960 -3.05 -0.06%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs