Mobile phone chip maker QUALCOMM, Inc. (
) said late Wednesday that it swung to a big second quarter profit,
but its third quarter revenue forecast fell short of expectations,
sending its shares lower.
The San Diego-based company reported fiscal second quarter net
income of $774 million, or 46 cents per share, compared with a net
loss of $289 million, or 18 cents per share, in the year-ago
period, when results were hurt by a big legal settlement. Excluding
one-time items, adjusted profit was 59 cents per share.
Revenue rose 8% from last year, to $2.66 billion.
On average, Wall Street analysts expected a smaller profit of
about 56 cents per share, on lower revenue of $2.63 billion.
Looking ahead, the company said it expects revenue of $2.5
billion to $2.7 billion for the third quarter, compared with $2.74
billion last year. Analysts currently expect $2.66 billion in
For the full year, the company said it expects revenue to range
from $10.40 billion to $11 billion, while analysts predict$10.77
Qualcomm shares fell $2.95, or -7%, in premarket trading
The Bottom Line
We had removed shares of QCOM from our "recommended" list back on
Sept.25, when the stock traded at $46.54. The company has a
dividend yield of 1.78%, based on last night's closing stock price
of $42.63. The company has technical support in the $36-$38 price
area. If the shares can continue to rebound, we see near-term
overhead resistance around the $46 price level. We would remain on
the sidelines for now.
QUALCOMM, Inc. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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