NEW YORK (TheStreet) -- Shares of Qualcomm (QCOM) are down 1.65% to $70.82 after the mobile chipmaker gave a more conservative five-year outlook than in the past as it faces an antitrust probe in China and more consumers there and in other developing countries buy lower-priced smartphones, Reuters reports.
China's expanding high-speed 4G network is driving demand for smartphones with leading-edge technology, but Qualcomm's opportunities have been clouded by a year-old antitrust investigation there and troubles collecting royalty payments from device makers, Reuters noted.
The company expects to grow its revenue between 8% and 10% annually over the next five years and its earning per share even more. In the past, Qualcomm has targeted double-digit annual growth in revenue and EPS over five years.
CEO Steve Mollenkopf told analyst on Wednesday at the company's annual investor day that Qualcomm's troubles in China were hurting its royalty business, called QTL, which provides most of the company's profits.
Qualcomm's overall revenue grew 6.5% in fiscal 2014, far below growth rates of around 30% in recent years. Analyst expect 5% revenue growth for 2015, according to Thomson Reuters I/B/E/S, Reuters said.
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: