High End Hoists Qualcomm

Qualcomm (QCOM - Cramer's Take - Stockpickr) boosted fiscal third-quarter financial projections, thanks to growing demand for fancier cell phones.

The San Diego wireless giant says it now expects adjusted earnings of 42 cents a share on sales of about $1.93 billion for the quarter ending June 25. Analysts had been looking for a pro forma profit of 40 cents a share on $1.88 billion, according to Reuters Research.

"Consumer demand for third-generation devices and services continues to be vibrant as operators offer compelling prices, services and devices," CEO Paul Jacobs said in a press release Tuesday.

And though Qualcomm's updated chip shipment estimates are 55 million, and within the previously predicted range, the company raised its mobile-phone sales estimate for the prior quarter.

Qualcomm books royalty payments one quarter after phonemakers sell their handsets. For the fiscal second quarter ended in March, Qualcomm says about 65.5 million code division multiple access, or CDMA, phones were sold. And the company says the average selling price per phone was $213.

Previously, Qualcomm had expected 63 million units to be sold in the prior quarter at an average price of $203 apiece.

Shares of the wireless shop jumped $1.55, or 4%, to $42.74 in early trading Tuesday.