Qualcomm Beats, Drops on Soft Guidance

Nov. 9.07 | About: Qualcomm Inc. (QCOM)

Wireless Chipmaker Qualcomm Inc. fell more than 7.5% in after-hours trading on a soft forecast for its next fiscal year (FY08), despite topping Wall Street's estimates in its latest quarter. President Steve Altman blamed his company's pricey ongoing legal dispute with Nokia over licensing fees as part of the reason for the softer than expected guidance (full QCOM earnings transcript). The company reported adjusted net EPS of $0.53 in its recently-ended quarter (F4Q07) on revenue of $2.31 billion. Net income of $1.13 billion was nearly doubly net of $614 million from a year ago. Analysts were, on average, looking for adjusted EPS of $0.53 on revenue of $2.26 billion. But the company forecast FY2008 EPS of between $2.03 and $2.09 (midpoint $2.06); consensus analyst estimates were for EPS of $2.18.

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