Apple Has Worms: Tech Weekly

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Though Apple has been in the doldrums lately, one of its suppliers is doing exceptionally well, as Qualcomm (QCOM) reported better-than-expected earnings on Wednesday.

The San Diego-based company reported earnings of 89 cents a share on $4.87 billion in revenue for its fiscal fourth quarter, up 18% year over year and 5% sequentially. Analysts polled by Thomson Reuters expected the chipmaker to earn 82 cents a share on $4.66 billion in revenue.

Qualcomm also said it expects a strong first quarter, as smartphone demand, particularly at the high end, continues to be robust. The company anticipates revenue between $5.6 billion and $6.1 billion, and non-GAAP EPS from $1.08 to $1.16. Analysts surveyed by Thomson Reuters were looking for revenue of $5.30 billion and EPS of $1.00.

Shares gained 3.9% over the week to close at $61.62.

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Cloud computing company Rackspace (RAX) reported third-quarter earnings that were in line on Tuesday, as revenue rose 27% year over year.

Rackspace reported earnings of $27.2 million, or 19 cents a share, on revenue of $335.9 million. Analysts polled by Thomson Reuters were looking for earnings of 19 cents a share on revenue of $335.9 million.

Rackspace shares closed the week down 9.1% at $60.48.

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Not all is rosy on the earnings front, as Groupon (GRPN) badly missed earnings estimates on Thursday amidst concerns over the viability of its business. The company is transitioning itself from a daily deals site, and focusing on its Goods business, which has lower margins.

Groupon reported break-even earnings on $568.8 million in revenue. Analysts polled by Thomson Reuters were looking for earnings of 3 cents a share on $590.1 million in revenue. Revenue rose 32% year over year, but Wall Street was looking for more.

Groupon provided fourth-quarter revenue guidance, that at the midpoint, was better than Wall Street's forecast. Analysts expected Groupon to generate $633.87 million in revenue, earning 4 cents a share. Groupon expects revenue to be between $625 million and $675 million.

Shares of Groupon plunged 28% this week to finish at $2.76.

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