Qualcomm (QCOM) Shares Slip Despite Solid Q3

July 20, 2011 5:06 PM EDT Send to a Friend
Qualcomm Incorporated (Nasdaq: QCOM) posted another solid quarter, but it wasn't enough to sway investors to hang on to their shares or buy more.

The mobile chip giant reported third-quarter earnings per share grew 28 percent to $0.73 per share, two cents above the consensus.

Revenue rose 34 percent to $3.62 billion, however were down 6 percent from last quarter. Wall Street had expected revenue a little lighter at $3.59 billion.

"Qualcomm delivered strong year-over-year results again this quarter as our business performed well across all key guidance metrics. In addition, we successfully completed the acquisition of Atheros, positioning us to further expand our opportunities going forward," said Dr. Paul Jacobs, chairman and CEO of Qualcomm.

Qualcomm sees fourth-quarter revenue of $3.86-$4.16 billion, versus the consensus of $3.93 billion. The company sees non-GAAP EPS of $0.75-$0.80, versus the consensus of $0.76.

For the year, Qualcomm raised revenue guidance from $14.1-$14.7 billion to $14.7-$15 billion, which compares to the consensus of $14.73 billion. The company raised EPS guidance from $3.05-$3.13 to $3.15-$3.20, versus the consensus of $3.15.

"Looking forward, we continue to see healthy growth in CDMA-based device shipments of approximately 18 percent in calendar year 2011, and we are pleased to be raising our revenue and Non-GAAP earnings guidance for the fiscal year, driven primarily by strong global smartphone adoption and the addition of Atheros," Jacobs added.

Shares of Qualcomm are down 3 percent to $55.61.


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