Good Quarter for Qualcomm - TheStreet

Good Quarter for Qualcomm

Shares rise in late trading.
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Qualcomm (QCOM) - Get Report flew by fiscal third-quarter targets and raised full-year guidance above Wall Street estimates.

The San Diego wireless tech titan posted adjusted earnings of $934 million, or 55 cents a share. That's a 29% increase over year-ago levels and up 11% sequentially.

Sales for the quarter ended July 1 were $2.33 billion, which is up 19% from last year and 5% higher than the prior quarter.

Analysts were looking for pro forma earnings of 51 cents a share on $2.27 billion in revenue, according to Reuters Research.

"The fundamental drivers of our business remain very strong. Our record revenue and earnings this quarter reflect continued worldwide demand for innovative third-generation devices and services," CEO Paul Jacobs said in a press release.

Looking ahead, Qualcomm now expects fiscal fourth-quarter adjusted earnings to be about 49 cents a share on sales of about $2.20 billion. Analysts' expectations call for 47 cents on $2.21 billion in sales. Qualcomm also boosted its chip forecast, calling for about 66.5 million in shipments for the current quarter. And the company says about 92 million phones will be shipped in that same period.

For the full fiscal year, Qualcomm now expects adjusted profit to total $1.96 a share on about $8.77 billion in sales. Analysts were looking for EPS of $1.90 on $8.72 billion in revenue.

Qualcomm also raised its estimate for the average sale price for its phones to $216. That is up from prior guidance of $208 and a penny better than year-ago levels.

The company also said its fourth quarter earnings tally does not include royalty payments from

Nokia

(NOK) - Get Report

, which could add about a nickel per share to the quarter's bottom line. Nokia and Qualcomm are at a standoff over licensing fees and royalty rates.

Qualcomm shares jumped $1.35 to $43.80 in after-hours trading Wednesday.