NEW YORK (TheStreet) -- Shares of Qualcomm Inc. (QCOM) are down -5.85% to $76.83 in early market trading as the company was downgraded to "equal weight" from "overweight" at Evercore Partners (EVC) after its revenue outlook for the September quarter fell below analysts expectations.
Qualcomm said revenue in the fiscal fourth quarter would be between $6.5 billion and $7.4 billion, with a midpoint of about $6.95 billion, below analysts consensus estimate for fourth quarter revenue of $7.15 billion.
The mobile chipmaker reported its fiscal third quarter results yesterday, with net income of $2.24 billion, or $1.31 diluted earnings per share, which was above the midpoint of analyst estimates of between $1.15 and $1.25.
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The company reported revenue of $6.81 billion for the fiscal third quarter, up 9% from the previous year, beating analysts consensus estimate of $6.52 billion.
Separately, 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow."