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Qualcomm beats Wall Street earnings expectations

2012 Consumer Electronics Show Showcases Latest Technology Innovations

Kevork Djansezian/Getty Images

CEO Paul E. Jacobs of Qualcomm delivers a keynote address at the 2012 International Consumer Electronics Show. The San Diego company pleased Wall Street with its most recent earnings.

Qualcomm beat what the Street had anticipated, while bringing more than $6 billion in revenue in its first fiscal quarter. 

That was a nearly 30 percent increase over the same quarter a year ago. And of that, profit was $2.2 billion, which worked out to $1.26 per share, a figure that delighted analysts who had expected less.

The good numbers pushed the company’s stock immediately higher in after-hours trading on the Nasdaq exchange. 

This contrasts with Canada’s Research in Motion, whose new BlackBerry smartphones are powered by Qualcomm processors. RIM changed its name to “BlackBerry,” but the new edition devices haven’t (yet) reversed its fortunes. Its stock dipped as Qualcomm’s rose.

Qualcomm told investors to expect continued good results in 2013 — in the lexicon of finance, it upgraded its "guidance" — as the company rolls out new chips and benefits from more consumers upgrading to smartphones, especially in developing world markets like China.

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Qualcomm messes with investors' heads

2012 Consumer Electronics Show Showcases Latest Technology Innovations

Kevork Djansezian/Getty Images

Chairman and CEO Dr. Paul E. Jacobs of Qualcomm delivers a keynote address at the 2012 International Consumer Electronics Show. The company beat earnings expectations for its fiscal second quarter but disappointed on guidance for the rest of the year.

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...

This is from Reuters:

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.

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