Qualcomm Stock Fired Up After Nokia Pact
Late Wednesday, Qualcomm announced it has settled all litigation with Nokia and entered a new agreement with the handset maker, enabling both companies to make and sell products that use cellular network technology, including the 3G and 4G standards. In addition, Nokia is withdrawing its complaint to the European Commission.
"Not only does the new license include all technologies but it also sets a bar for the whole industry, establishing Qualcomm as a company all must deal with to be a player in current 3G and future 4G technologies," writes Oppenheimer analyst Ittai Kidron, in a research note. "Qualcomm's business model has been validated and investors' concerns are now put to bed."
The news came as the San Diego chipmaker said that net income fell 6% in the fiscal third quarter to $748 million, or 45 cents a share, from $798 million , or 47 cents a share, a year earlier. Excluding various items, the company earned 55 cents a share, in line with analysts' expectations, according to Thomson Reuters.Revenue in the quarter grew 19% year over year to $2.76 billion, slightly ahead of Wall Street's average forecast of $2.71 billion. Qualcomm added that free cash flow fell 14% to $844 million. Looking ahead, Qualcomm said fiscal fourth-quarter revenue will be in a range of $2.5 billion to $2.7 billion with earnings of 49 cents to 51 cents a share. Qualcomm says the guidance is based on its current business outlook and comes prior to accounting for the agreement with Nokia. On average, analysts expect a profit of 54 cents a share on revenue of $2.7 billion.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV