NEW YORK (TheStreet) -- Qualcomm (QCOM) considered picking at a piece of the BlackBerry (BBRY) pie. Speaking with Bloomberg after its fourth-quarter earnings release, CEO Dr. Paul E. Jacobs said the company was evaluating purchasing a portion of BlackBerry's assets before it withdrew its offer for sale.
Earlier in the week, a $4.7 billion takeover deal with Fairfax Financial Holdings unraveled, leading BlackBerry to abstain from further sales talks with additional interested parties. The smartphone maker now plans to raise $1 billion in convertible debt and will reveal a new turnaround plan under the leadership of interim CEO John Chen.
In pre-market trading, BlackBerry inched 0.3% higher to $6.68, after plummeting 14.3% since Monday. Qualcomm shares shed 4% to $66.95 as investors expressed concerns over poor revenue guidance.
For its first-quarter ending December, the mobile chipmaker expects earnings in the range of $1.10 to $1.20 a share and revenue between $6.3 billion and $6.9 billion. Analysts surveyed by Yahoo! Finance had hoped for $1.29 a share on $6.99 billion. The company also gave full year guidance, saying it expects to generate between $26 billion and $27.5 billion in revenues.
QCOM 2014 Guidance: Revs $26-$27.5 bln, Non-GAAP diluted EPS $4.95 to $5.15 Estimated 3G/4G device ASP: ~$223, down approx 1% YoYChris Ciaccia (@Chris_Ciaccia) November 6, 2013
For the fourth-quarter, the San Diego-based company recorded earnings $1.05 a share on revenue 33% higher than a year ago of $6.48 billion. Though earnings were short 3 cents, revenue beat by $130 million due in part to increasing smartphone use in China.
TheStreet Ratings team rates Qualcomm INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate Qualcomm INC (QCOM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, impressive record of earnings per share growth and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
- You can view the full analysis from the report here: QCOM Ratings Report