Qualcomm reported fiscal second-quarter earnings Wednesday that met analysts' expectations on slightly better-than-expected revenue as smartphone demand continues to rise. But light earnings guidance for the third quarter sent shares down sharply in after-hours trading.
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Qualcomm reported adjusted second-quarter earnings of $1.17 a share on $6.12 billion in revenue, up from earnings of $1.01 a share on revenue of $4.94 billion in the year-earlier period. Earnings rose 16 percent year over year, while revenue climbed 24 percent.
Analysts had expected the world's third largest chip maker to report earnings excluding items of $1.17 per share on revenue of $6.09 billion, according to a consensus estimate from Thomson Reuters.
For the third quarter, the company sees $5.8 billion to $6.3 billion in revenue and earnings excluding items of 97 cents per share to $1.05 per share. The Street was forecasting earnings of $1.04 a share on revenue of $5.88 billion.
Qualcomm also raised full-year earnings guidance to $4.40 to $4.55 per share on revenue of $24 billion to $25 billion. That represents 26 percent to 31 percent revenue growth. Analysts were modeling earnings of $4.54 a share for the full year on revenue of $24.12 billion.
"We delivered another strong quarter as the worldwide adoption of smartphones continues," said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm. "Looking forward, we are seeing strong traction with our new Qualcomm Snapdragon 600 and 800 processors, and we continue to expect healthy growth in 3G and 3G/4G multimode devices around the world."
The company also forecast 1.015 billion to 1.085 billion 3G/4G device shipments in 2013.