Qualcomm Pops as Revenue Exceeds Estimates

NEW YORK ( TheStreet) -- Qualcomm ( QCOM) shares popped 3.1% to $63.30 in extended hours trading Wednesday after the San Diego-based chipmaker produced fiscal third-quarter revenue that beat expectations and earnings per share that matched the Wall Street target.

Net income for the June-ending quarter rose 31% to $1.58 billion, or $1.03 in adjusted earnings per share, compared to a year ago. Revenue increased 35% to $6.24 billion. Analysts, on average, were expecting earnings per share of $1.03 on revenue of $6.05 billion, according to Thomson Reuters.

"We delivered another strong quarter as our Qualcomm Snapdragon solutions were prominent in a broad set of flagship smartphones, and 3G/4G device average selling prices were stronger than expected," Paul Jacobs, chairman and CEO of Qualcomm, said in a statement. "This quarter, we continued our technology leadership, with our Snapdragon 800 processor powering the world's first LTE-Advanced smartphone. We see expanding opportunities for growth of 3G/4G devices around the globe, driven by the strong pace of innovation in the industry."

The company raised its full-year earnings outlook to range between $4.48 and $4.56 a share on revenue expectations of between $24.3 billion and $25 billion. Qualcomm previously forecasted earnings between $4.40 and $4.55 a share on revenue of $24 billion to $25 billion.

Average selling prices of CDMA (code division multiple access) devices are now forecast to range between $223 and $229, up from the prior forecast of $216 to $224, the company said.

Written by Andrea Tse in New York

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