Qualcomm Beats Street’s Forecast, Outlook Cautious but Positive (QCOM)
Qualcomm Inc. (NASDAQ: QCOM), which is world’s largest chip supplier to smartphone industry, after-market close on Wednesday announced better than expected fiscal first-quarter results and raised its outlook on fiscal 2013 thanks to growing number of smartphone users and higher demand for speed wireless services.
Shares rallied 6.23% in aftermarket trading on Wednesday.
The Company also said that it was foreseeing strong growth in Latin America market, and other emerging markets, including China.
Nevertheless, Company’s Chief Financial Officer, Bill Keitel, 59, who announced his retirement on Wednesday, said to analysts and investors in a conference call that uncertainty in the global macroeconomic environment could prove to be a headwind.
“Given continued global macroeconomic uncertainties, we are continuing to maintain a cautious outlook for the year ahead,” said Keitel.
Keitel will be replaced by George Davis as the next CFO. George Davis is currently the CFO at Applied Materials. He is expected to join Qualcomm from March 1, 2013.
As more and more people shift towards smartphones away from desktops and global carriers move towards high speed wireless technology—referred to as long term evolution (LTE), the demand for Qualcomm’s is rising at a brisk pace.
Not only its revenue from chip sales is increasing, but the royalty it receives from phone makers that have technology license agreements with the company is also rising.
For the fiscal first quarter ended December 30, the San Diego based Company reported earnings of $1.91 billion, or $1.09 a share, compared with a profit of $1.4 billion, or 81 cents a share, in the year earlier quarter.
After excluding onetime items, earnings on adjusted basis came in at $1.26 a share, beating analysts’ consensus estimate for $1.13 a share, according to data compiled by Thomson Reuters.
Revenue during the period stood at $6.02 billion, up from $4.68 billion, in the year-earlier quarter. Analysts polled by Thomson Reuters were expecting revenue of $5.9 billion.
For fiscal 2013, the Company now expects earnings to be in the range of $4.25 a share to $4.45 a share, up from its earlier guidance of $4.12 a share to $4.32 a share.