This Day On The Street
Continue to site right-arrow
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
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Qualcomm Earnings Dazzle, but Not Enough

Stocks in this article: QCOMAAPL

NEW YORK ( TheStreet) -- Qualcomm (QCOM) delivered the expected earnings beat and guidance raise, but the numbers weren't strong enough to keep the Street happy.

The San Diego chip shop posted adjusted earnings of 73 cents a share Wednesday, up from the 68 cent profit in the year-ago period and two cents better than the analysts' consensus target.

Sales for the fiscal third quarter ended last month were $3.62 billion, up 28% over year-ago levels of $2.70 billion, and above the $3.6 billion in revenue analysts were expecting, according to Yahoo! Finance.

But shares of the wireless tech shop dipped 2% to $55.95 in after-hours trading Wednesday as sales slipped 6% below prior quarter levels and guidance was not as robust as expected.

"Qualcomm delivered strong year-over-year results again this quarter as our business performed well across all key guidance metrics," CEO Paul Jacobs said in a press release.

Looking ahead, Qualcomm says it expects fiscal fourth-quarter earnings of about 77.5 cents a share on revenue in the range of $4.01 billion. That is slightly better than analysts' targets, which called for a profit of 76 cents a share on sales of $3.96 billion.

Qualcomm says it shipped 120 million chips in the most recent quarter, up 17% from year-ago levels and up 2% sequentially. Some analysts expected chip shipments of 119 million.

The company says about 172 million CDMA phones were shipped in the March quarter at a average selling price of $212. Qualcomm shipped 136 million phones during the same period a year ago.

The company did not mention Apple (AAPL) in its press release. Qualcomm is expected to see a big upswing in sales due to recent design wins at Apple, Nokia (NOK) and Research In Motion (RIMM).

Qualcomm typically offers conservative projections and then updates its financial forecast later in the quarter. But for now, the Apple jackpot did not register in the guidance.

--Written by Scott Moritz in New York.



To contact this writer, click here: Scott Moritz, or email: scott.moritz@thestreet.com.

Follow Scott on Twitter at MoritzDispatch

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!

Markets

DOW 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs