Qualcomm shares drop as analyst cuts forecast

NEW YORK - Shares of Qualcomm Inc., the world's largest maker of chips that run cell phones, dropped Thursday ahead of its quarterly earnings report after an analyst forecast slower demand for the company's chips in a weakening cell phone market.

Shares fell $2.12, or 6 percent, to $33.05 in Thursday trading. In the past 52-weeks, shares have traded between $32.21 and $56.88.

Analyst Mark McKechnie cut his fiscal 2009 earnings per share estimate to $2.35 from $2.50.

Analysts polled by Thomson Reuters expect $2.58 per share, on average.

McKechnie reaffirmed his "Buy" rating on the stock, but said he expects the company to face growing inventories because of a slower economy in the U.S. and lower subsidies for cell phone vendors in South Korea.

Qualcomm is expected to release its fourth-quarter earnings after the close of trading Thursday.

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