QUALCOMM Q2 Profit Beats View, but Q3 Forecast Falls Short (QCOM)

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Mobile phone chip maker QUALCOMM, Inc. ( QCOM ) 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 revenue.

For the full year, the company said it expects revenue to range from $10.40 billion to $11 billion, while analysts predict$10.77 billion.

Qualcomm shares fell $2.95, or -7%, in premarket trading Thursday.

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. ( QCOM ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Created by Dividend.com

This article appears in: Investing , Stocks

Referenced Stocks: QCOM



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