Qualcomm revenue bts Street, shares up
Qualcomm forecast first quarter revenue of $5.6 billion to $6.1 billion compared with Wall Street expectations for $5.6 billion according to Thomson Reuters I/B/E/S.
It forecast full-year 2013 revenue growth in a range of 20 percent to 26 percent compared with revenue growth of 28 percent in 2012.
Chief Financial Officer William Keitel said that the company has factored a weakening world economy and an increase in competition into its estimates for 2013.
Despite a somewhat lackluster world economy and despite very intense competition, we're pretty optimistic on our financial outlook for 2013, Keitel told Reuters. Qualcomm told analysts on a conference call that it was able to boost its 28 nanometer chip supply significantly in the fourth quarter and that it is on track for supply to match demand for these chips by the end of December.
This was a key driver in boosting Qualcomm's revenue 18 percent to $4.87 billion from $4.12 billion in the year-ago quarter and well above Wall Street expectations for $4.66 billion according to Thomson Reuters I/B/E/S.
Excluding unusual items, its earnings per share was 89 cents a share compared with Wall Street expectations for 82 cents according to Thomson Reuters I/B/E/S.
We have to take our hat off to Qualcomm management here on their execution, JPMorgan analyst Rod Hall said in a research note referring to the company's ability to overcome its supply shortage.
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