Qualcomm, perhaps the most important technology firm in San Diego (market cap: $113 billion), turned in a great fiscal second quarter performance, beating expectations. Revenue, earnings per share, the whole shebang — all well up. The company has been on a tear at the beginning of the year. Personally I am greatly enjoying the performance of its Snapdragon processor on my new BlackBerry Bold. But then Qualcomm had to go and make investors nervous about the future of its business...
Since the company reported quarterly revenue and earnings that were ahead of analysts' expectations, investors were perplexed over why the company was not able to raise its financial targets for the full year.
Bernstein analyst Stacy Rasgon said the company's forecast for third quarter chip shipments of 144 million to 152 million was below his expectation for 157 million. He said that many on Wall Street had hoped it would raise financial targets for 2012.
Maybe Qualcomm will exceed expectations later this year. But for now, Wall Street is scratching its head.