Qualcomm Profit Up on Chip Demand; Outlook In Line
Qualcomm posted a higher first-quarter profit after items, due to demand for its mobile phone chips, and its shares jumped following the report.
The wireless technology and chip supplier also gave a forecast for the current quarter that was in line with analysts' expectations.
Qualcomm posted a profit of $767 million, or 46 cents per share for the period ended Dec. 30, compared with $648 million, or 38 cents per share in the year-ago quarter. Revenue rose a better-than-expected 21 percent to $2.44 billion.
Qualcomm shares gained as much as 7.43 percent in after-hours trade, having closed down 29 cents, or 0.79 percent, at 36.63 during regular trade on the Nasdaq.
But profit in the quarter before stock-based compensation and other items was 52 cents per share, Qualcomm said in a statement. Analysts expected a per-share profit of 53 cents, on average, on revenue of $2.22 billion, according to Reuters Estimates.
"The demand for CDMA-based devices, applications and services continues to accelerate around the world," Chief Executive Paul Jacobs said in a statement.
CDMA is a cell phone technology used by Qualcomm and others and it is also used in smart phones.
In December the company forecast adjusted earnings per share of 52 cents to 53 cents and revenue to be at the high end of its previously announced range of $2.3 billion to $2.4 billion.
For the current quarter, San Diego-based Qualcomm forecast earnings per share before items of 50 cents to 52 cents on revenue of $2.4 billion to $2.5 billion.
That compares with current analyst estimates of a profit of 52 cents per share on revenue of $2.43 billion.
Shares of Qualcomm advanced 6.5 percent to $39 in after-hours trading. In regular Nasdaq trade, the stock fell 29 cents, or less than 1 percent, to close at $36.63.