QUALCOMM Inc. (QCOM) Raises Guidance
Qualcomm (QCOM 40.12) raised its outlook for the fiscal second quarter on Tuesday, citing strong worldwide demand for CDMA products. Its shares, which are off more than 21% since reaching a 52-week high last May, traded higher on the news, gaining more than 4% in early-market activity.
The announcement comes a day after rival Texas Instruments (TXN 31.96) updated its guidance. The world's largest maker of semiconductor chips for mobile phones narrowed its revenue and EPS range, indicating the bottom has been reached in what has proven to be a short-lived down turn. Given its product portfolio and positioning in key growth markets, TI remains our favorite name in the group.
Qualcomm, which licenses CDMA semiconductor technology and system software to mobile phone and equipment makers, projected quarterly earnings of $0.48 to $0.49 per share, compared with its previous estimate of $0.42 to $0.44 per share. It raised its revenue guidance for the period to $2.1 to $2.2 billion, up from an earlier range of $2 to $2.1 billion. Analysts on average are currently looking for second quarter earnings of $0.43 per share on revenue of $2.08 billion.
The San Diego-based company said the revised outlook is based on shipments of approximately 60 to 61 million Mobile Station Modem chips, versus a prior estimate of 55 to 57 million units. The company, which reports royalties in the second quarter for products shipped in the December quarter, estimates that about 91 million CDMA units were shipped in the December quarter at an average selling price of $217. Approximately 67 million CDMA units were shipped in the prior year period.
In addition, Qualcomm raised its quarterly dividend to $0.14 per share from $0.12 per share, which raises its annual dividend to $0.56 per share.
--Richard Jahnke, Briefing.com
The announcement comes a day after rival Texas Instruments (TXN 31.96) updated its guidance. The world's largest maker of semiconductor chips for mobile phones narrowed its revenue and EPS range, indicating the bottom has been reached in what has proven to be a short-lived down turn. Given its product portfolio and positioning in key growth markets, TI remains our favorite name in the group.
Qualcomm, which licenses CDMA semiconductor technology and system software to mobile phone and equipment makers, projected quarterly earnings of $0.48 to $0.49 per share, compared with its previous estimate of $0.42 to $0.44 per share. It raised its revenue guidance for the period to $2.1 to $2.2 billion, up from an earlier range of $2 to $2.1 billion. Analysts on average are currently looking for second quarter earnings of $0.43 per share on revenue of $2.08 billion.
The San Diego-based company said the revised outlook is based on shipments of approximately 60 to 61 million Mobile Station Modem chips, versus a prior estimate of 55 to 57 million units. The company, which reports royalties in the second quarter for products shipped in the December quarter, estimates that about 91 million CDMA units were shipped in the December quarter at an average selling price of $217. Approximately 67 million CDMA units were shipped in the prior year period.
In addition, Qualcomm raised its quarterly dividend to $0.14 per share from $0.12 per share, which raises its annual dividend to $0.56 per share.
--Richard Jahnke, Briefing.com
Labels: QCOM, Qualcomm Inc.
posted by Stock Administrator @ 12:57 PM
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