Qualcomm Sparks Tech Rally

NEW YORK (TheStreet) -- Qualcomm (QCOM) is back to its old form with an upward revision to its profit and sales targets, giving the tech sector a slight boost.

The San Diego wireless chip shop has revived its long-running tradition of raising guidance ahead of its quarterly earnings report. Qualcomm says strong licensing performance and big chip sales pushed financial results higher than expected for the fiscal second quarter ending Sunday.
Qualcomm

The company now expects adjusted earnings of about 57 cents a share, up from the 51 cent range it had previously forecast and above the 53 cents analysts were looking for, according to Yahoo! Finance.

Sales for the quarter are now expected to be about $2.6 billion, up from the $2.5 billion the company had targeted earlier and slightly above the $2.58 billion analysts were expecting.

Chip shipments will also exceed earlier projections, says Qualcomm. For the quarter, about 92.5 million chips were sold compared with the 90 million estimate the company previously gave.

"We are very pleased with our stronger than expected performance this quarter with both the licensing and chipset businesses projecting higher revenues versus our prior guidance," CEO Paul Jacobs said in a press release Thursday.

Qualcomm's upside surprise comes as electronics retailer Best Buy ( BBY) delivered big fiscal fourth quarter numbers and raised 2010 guidance as demand for PCs and mobile phones remained strong.

Qualcomm shares surged 8% to $43.43, Best Buy was up 7% and the Nasdaq was up 1% in early trading Thursday.

-- Written by Scott Moritz in New York

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