Qualcomm ( QCOM) beat targets but pegged guidance below Wall Street estimates.

The San Diego wireless tech shop posted a fiscal fourth quarter pro forma profit of 54 cents a share, up from 42 cents in the year-ago quarter. For fiscal 2007, Qualcomm recorded adjusted earnings of $2.01 a share, up 22% over the $1.64 profit last year.

Analysts were looking for quarterly pro forma earnings of 53 cents a share and a fiscal profit of $2, according to Yahoo Finance.

Sales for the quarter were $2.31 billion, which is down slightly from the prior quarter, but up 15% from the year-ago level. For the year, sales hit $8.87 billion, an 18% increase over last year.

Analysts expected fiscal fourth-quarter sales of $2.26 billion and $8.83 billion for the year.

"We delivered another record performance in fiscal 2007 because our employees and partners continue to provide industry leading innovative wireless products and services," CEO Paul Jacobs said in a press release.

Looking ahead, Qualcomm expects to earn 51 cents a share on sales of $2.35 billion in the fiscal first quarter. For the year, Qualcomm guided for adjusted profit of $2.06 cents a share on $9.75 billion in revenue.

Analysts were looking for an adjusted first-quarter profit of 52 cents and $2.18 a share for the fiscal year. And the company expects sales to be $2.38 billion in the current quarter and $9.84 billion for the year.

Qualcomm provided no updates on its many legal battles including a patent infringement case with rival Broadcom ( BRCM) and a technology licensing dispute with Nokia ( NOK). Qualcomm says it excluded about 27 cents a share in uncollected Nokia royalties from its projected fiscal 2008 earnings forecast.

One strong signal for the current quarter is that Qualcomm expects the average selling price per phone to be $212, up from $208 a year ago as more expensive phones enter the market during the holidays.

Qualcomm also projects fiscal first-quarter chip shipments will hit 76 million and CDMA phone shipments will be around 96.5 million. For 2007, Qualcomm raised its CDMA phone shipment forecast to 390 million up from 377 million previously expected.

For 2008, ASPs are expected to fall to $199 as more low cost phones are sold in developing markets.

Qualcomm shares fell $2.48, or 6%, to $37.28 in after-hours trading Thursday.

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