Solid Showing at Qualcomm [TheStreet.com]
Summary: Wireless giant Qualcomm has reported fiscal Q4 adjusted earnings of $705 million, or $0.42/share, beating analyst expectations of $0.41/share. Quarterly profit rose 14% on strong demand for cell phone chips. Total sales for the quarter were $2 billion, 28% above a year ago and ahead of analysts' forecast of $1.97 billion. For the fiscal year, adjusted net earnings were $2.8 billion, or $1.64/share, up 42% for the year. Sales grew 33% to $7.53 billion. The company's forecast for fiscal Q1 is for adjusted net income of $0.43/share on revenue between $1.98 billion and $2.08 billion, slightly shy of Street expectations of a $0.44 profit on $2.07 billion. For fiscal 2007, Qualcomm forecasts a profit of $1.44 on sales between $8.1 billion and $8.6 billion vs. analyst expectations of $1.82 on $8.6 billion. Qualcomm is in the middle of a legal dispute with Nokia over technology patent license fees. The companies' agreement, which Qualcomm is attempting to renegotiate, will expire on April 9, and Qualcomm forecasts a $0.04-$0.06 hit to fiscal Q4 2007 earnings if payments from Nokia stop at that time. Analysts agreed that the estimate was reasonable and appreciated Qualcomm's quantifying it in advance.
Related links: QUALCOMM F4Q06 (Qtr End 9/24/06) Earnings Call Transcript • Cell Phone Makers: Nokia May Run, But Qualcomm's On An End Run • In WiMax, It's Qualcomm vs. The World
Potentially impacted stocks and ETFs: Qualcomm Inc. (NASDAQ:QCOM), Nokia (NYSE:NOK) • Broadband HOLDRs (NYSE:BDH), SPDR O-Strip (OOO), PowerShares Dynamic Large Cap Growth (NYSEARCA:PWB)
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