Qualcomm 3Q Profit Rises, But Outlook Disappoints

SAN DIEGO (AP) -

Qualcomm Inc. on Wednesday reported net income that climbed by 42 percent in its fiscal third quarter and topped analysts’ expectations. But its earnings guidance for the current quarter fell short of Wall Street estimates.

The San Diego-based company said earnings increased to $2.24 billion, or $1.31 per share, from $1.58 billion, or 90 cents per share, in the same quarter a year ago.

Earnings, adjusted for stock-option expenses and costs related to mergers and acquisitions, came to $1.44 per share. The average per-share estimate of analysts surveyed by Zacks Investment Research was for profit of $1.22.

The chipmaker said revenue climbed 9 percent, to $6.81 billion from $6.24 billion, from the same quarter a year ago, and beat Wall Street forecasts. Analysts expected $6.55 billion, according to Zacks.

Qualcomm said it expects to earn between $1.20 and $1.35 per share over the three months ending Sept. 30, excluding one-time items, with revenue of $6.5 billion to $7.4 billion.

According to FactSet, analysts are forecasting net income of $1.38 per share and $7.14 billion in revenue, on average.

The shares have increased $7.35, or 9.9 percent, to $81.60 since the beginning of the year, while the Standard & Poor’s 500 index has increased 7.5 percent. The stock has risen $20.21, or 33 percent, in the last 12 months.