Qualcomm Misses Earnings Estimates

Updated from 5:38 p.m. EST

Qualcomm (QCOM Quote) couldn't pull it off.

In a disappointing finish to its fiscal 2001, Qualcomm fell short of expectations, posting a profit of 23 cents a share on $682 million in revenues in its fourth quarter, instead of the 25 cents and $694.65 million that the Street had anticipated. Qualcomm attributed the shortfall to items outside its core business of wireless technology, such as loans and accounting changes.

The company made conservative projections for the December quarter, estimating 5% to 10% revenue growth in the first quarter of fiscal 2002, or $716 million to $750 million, and earnings between 21 cents and 25 cents a share. Analysts were hoping for a rosier profit outlook; before Qualcomm's announcement, consensus estimates for the first quarter had called for improvement to a profit of 27 cents and $746 million in revenue. Qualcomm predicts that 85 million to 95 million CDMA phones will be sold in 2002 -- more than a 20% increase from Qualcomm's most recent projections for 75 million CDMA handset sales in 2001, which it reiterated Tuesday. Qualcomm expects to make less in royalties on those phones, however, because of what it believes will be a 10% drop in average selling prices for the handsets. ASPs slipped around 10% in fiscal 2001. ...