Qualcomm (QCOM) Jumps as Q3 Results and Guidance Better than Feared

July 18, 2012 4:38 PM EDT
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After posting a 2.9 percent gain on the day, shares of Qualcomm (Nasdaq: QCOM) are continuing higher in after-hours trading Wednesday as company posted third quarter earnings results that were better than some investors had feared.

Qualcomm's third quarter earnings per share were $0.86, in-line with analysts. Revenues for the wireless chip giant rose 28 percent year-over-year and 6 percent sequentially to $4.63 billion, but missed the Wall Street consensus of $4.68 billion.

Investors were disappointed with company guidance that came in light of expectations due to slightly lower projected sales of smarthphones.

Qualcomm sees fouth quarter EPS of $0.78-$0.84 versus the consensus of $0.89. They see Q4 revenues of $4.45B - $4.85 billion, up 8-18 percent, versus the consensus of $4.9 billion.

For the year, Qualcomm sees EPS of $3.61 - $3.67 versus prior guidance of $3.61 - $3.76 and the consensus of $3.74. They see revenues rising 25-28 percent to $18.7-$19.1 billion, versus its prior view of $18.7-$19.7 billion and the consensus of $19.2 billion.

Dr. Paul E. Jacobs, chairman and CEO of Qualcomm said "Looking forward, our growth estimates for 3G/4G device shipments in calendar 2012 have moderated slightly, and we now expect the demand profile of the calendar year to be more back-end loaded as new devices are launched for the holiday season. Although our outlook for semiconductor volumes in the fiscal fourth quarter has been reduced from our prior expectations, we are ramping supply of our 28 nanometer chipsets to help enable what we expect to be a strong December quarter for our semiconductor business."

Shares of QUALCOMM last traded at $57.45, up 2.4 percent.

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