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
TheStreet Open House

Qualcomm's Stock Slides on Weak Guidance (Update1)

(Updates to provide comments from the conference call.)

NEW YORK ( TheStreet) -- Qualcomm (QCOM) shares slid in after-hours trading after the chipmaker offered weak third-quarter guidance.

The San Diego-based firm, which supplies semiconductors to handset makers including Apple (AAPL) and Samsung, expects third-quarter earnings of 83 cents to 89 cents a share. Revenue is forecast at $4.45 billion to $4.85 billion. Analysts polled by Thomson Reuters had estimated earnings of 90 cents on $4.8 billion in revenue.

Qualcomm reported second-quarter earnings after market close on Wednesday

In the most recent quarter, Qualcomm posted earnings, excluding items, of $1.01 a share on $4.94 billion in revenue. Analysts polled by Thomson Reuters had expected earnings of 96 cents a share on $4.84 billion in revenue.

Shares of Qualcomm finished the regular session lower, down 0.3% to close at $67.05. In extended-hours trading, after the report was released, Qualcomm extended a decline to 3.5%, according to Nasdaq.com.

The semiconductor company said it's seeing supply constraints for its 28 nanometer chips, as demand is outpacing supply. It's working on getting supply up to speed, and that will cause operating expenses to be slightly higher in the third quarter.

Still, Qualcomm reaffirmed its full-year revenue guidance of $18.7 billion to $19.7 billion, up 25% to 32%. It also raised its non-GAAP full-year earnings to $3.61 to $3.76 per share, up from a previous $3.55 to $3.75.

Qualcomm CEO Paul Jacobs cited growth in 3G and 4G smartphones in the most recent quarter. On a conference call, the company said there are more than 370 announced Snapdragon devices, and more than 400 in design. The company is expecting stronger demand in the last half of the year than it was a few months ago as more products come online.

Also of note was the comment that there is going to be a lot of focus on product launches in the company's September quarter, and particularly in the December quarter.

The chipmaker ended the quarter with $26.6 billion in cash, up from $22.1 billion in the year-earlier quarter.

Interested in more on Qualcomm? See TheStreet Ratings' report card for this stock.

Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices.

-- Written by Chris Ciaccia in New York

>To follow the writer on Twitter, go to http://twitter.com/commodity_bull.

>To submit a news tip, send an email to: tips@thestreet.com

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!
DOW 17,144.75 -27.93 -0.16%
S&P 500 1,990.53 -3.76 -0.19%
NASDAQ 4,522.1490 -5.54 -0.12%

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