Qualcomm (QCOM) Stock Soars on Q3 Beat, Goldman Upgrade
NEW YORK (TheStreet) -- Shares of Qualcomm (QCOM) - Get Report are jumping 7.67% to $60.10 in pre-market trading Thursday after the company reported better-than-expected 2016 third quarter results.
After yesterday's closing bell, the San Diego-based company posted adjusted earnings of $1.16 per share, topping analysts' forecasts of 97 cents per share.
Revenues rose 4% to $6 billion from last year and was higher than Wall Street's expectations of $5.8 billion.
Goldman Sachs added buy-rated Qualcomm to its "Conviction List" following the results.
"Qualcomm posted its first year-over-year revenue growth in four quarters on a strong chipset product cycle, better smartphone demand in the low end, and recovery of royalties in China," the firm wrote in an analyst note this morning.
Goldman expects revenue growth to accelerate into fiscal 2017 as Qualcomm's share gains at Samsung (SSNLF) and with Chinese OEMs overcome share loss in the iPhone and its China royalty collections recover.
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Separately, TheStreet Ratings Team has a "Hold" rating with a score of C+ on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels.
But the team also finds that the stock has had a generally disappointing performance in the past year.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: QCOM