Qualcomm Nails Targets

Wireless chip giant sails smoothly and guides in line with expectation.
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(QCOM) - Get Report

delivers, hitting its targets and guiding in-line with expectations.

The wireless chip and technology developer posted an adjusted income of $872 million or 52 cents a share. Those numbers are up 21% from year-ago levels but down 4% sequentially. Analysts were looking for pro forma profit around 53 cents a share for the fiscal first quarter ended last month.

Sales totaled $2.44 billion in the quarter, about 20% above the year-ago level and 6% ahead of the fiscal fourth quarter results. The revenue number slightly beat the $2.41 billion mark analysts were expecting

Our results reflect another record quarter of chipset shipments and a 21 percent year-over-year growth in both revenues and pro forma earnings per share."

Looking ahead, Qualcomm sees fiscal second quarter results flat with first quarter levels, with adjusted profit of 51 cents on $2.45 billion in sales. That is roughly in line with Wall Street's expectations.

The company also raised slightly its full year adjusted profit of about $2.04 a share on revenue of $9.8 billion, which is in line with analysts' projections.

Qualcomm saw strong demand for chips and phones in the fiscal first quarter. Chip shipments were about 82.5 million, well above the 61 million for the same period a year ago. And phone shipments hit 115 million in the quarter, up from the 88 million a year ago. The average selling price for each phone was $216, up from $213 a year ago.

Earlier Wednesday, Motorola announced that it had cleared legal hurdles and added Qualcomm to its list of chip suppliers.

Qualcomm shares jumped $2.26, or 6%, to $38.89 in post-close trading Wednesday.