Investing

Qualcomm's (QCOM) Surprise

According to MarketWatch: Qualcomm reported earnings of $798 million, or 47 cents a share, for the quarter ended July 1 compared with earnings of $643 million, or 37 cents a share, for the same period last year.

Excluding charges related to stock options, the company said earnings would have come in at $934 million, or 55 cents per share, for the quarter. This beat the 52 cents per share expected by Wall Street, according to analysts polled by Thomson Financial.
Revenue grew 19% to $2.33 billion from $1.95 billion, beating the $2.27 billion expected by analysts..
So, what happened to the disputes with its largest customer, Nokia (NOK)? And Broadcom (BRCM) beating it up and taking its lunch money at the ITC?
More surprising than the earnings was the guidance. Qualcomm lifted its revenue forecast for the fourth fiscal quarter to a range of $2.15 billion to $2.25 billion, an increase of 8% to 13% from its prior guidance. It expects earnings per share to fall between 48 cents and 50 cents for the period. Analysts had been expecting earnings of 47 cents a share on revenue of $2.21 billion for the quarter.
Demand for Qualcomm’s 3G chips and IP may simply be too great for all of its competition to overcome. WiMax may not hurt Qualcomm. Patent challenges from Broadcom, Nokia, and others may not dent future earnings.
In a way, the company has become like the Microsoft (MSFT) of 20 years ago, or Apple (AAPL) today. The products Qualcomm makes are strong enough and its market share is large enough that challengers simply can’t fight it.
Douglas A. McIntyre can be reached at [email protected].

100 Million Americans Are Missing This Crucial Retirement Tool

The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.

Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.

A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.

Click here to learn how to get a quote in just a few minutes.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.

AI Portfolio

Discover Our Top AI Stocks

Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.

You can follow him investing $500,000 of his own money on our top AI stocks for free.