Updated from 1:47 p.m. to include additional information about Qualcomm's issues in China in the eighth paragraph.
NEW YORK, NY (TheStreet) -- Qualcomm (QCOM) told analysts Wednesday the company's five-year compound annual growth rate (CAGR) will be between 8% and 10% per year with earnings per share growing at a faster clip, as the company benefits from the continued expansion and the global shift to LTE (Long Term Evolution) or 4G wireless networks, with new opportunities around connected devices.
At Qualcomm's Wednesday analyst meeting at the Grand Hyatt in New York, CEO Steven Mollenkopf said top and bottom line growth will be driven by its core smartphone business with support from new businesses in adjacent markets such as automotive and wearables.
The semiconductor company's guidance provides a long-term view beyond the fiscal 2015 first quarter, in which it had previously said it anticipates between $6.6 billion and $7.2 billion in revenue. Full year revenue guidance falls between $26.8 billion and 28.8 billion and earnings per share of between $5.05 and $5.35, with the midpoint coming in below where it finished 2014. In 2015, "unit growth is going to trump ASP decline again," Chief Financial George Davis said.
Qualcomm shares closed lower in Wednesday trading, falling 2.1% to $70.47.
Looking ahead at market dynamics, the company said it expects the global 3G/4G handset replacement rate to dip slightly to 30% in the 2015 calendar year, versus 31% for 2014. It also anticipates global 3G/4G device shipments to grow by a CAGR of 15% over the next five years, with a majority of growth coming from emerging markets such as Latin America, Eastern Europe, India, and China.