QUALCOMM, Inc (NASDAQ:QCOM) docks smartly on smartphone quay

Posted by Lacee Page July 26, 2013 0 Comment 739 views

The largest semiconductor- seller for mobile phones, QUALCOMM, Inc (NASDAQ:QCOM) has projected Q4 sales that might just top analysts’ estimates. The boost has come from a rise in smartphone demand in different emerging markets. In a statement, the company said that in the period ending September, sales will be in the range of $5.9B-$6.6B. The net income will be 86-94 cents/share in comparison with the average analyst estimate of 94 cents/share and 6.3B.

Late on Wednesday, the San Diego-based mobile chip maker revealed that it had exceeded its Q3 earnings projections and that there is vast potential for growth in demand for mobile devices across the world. The company manufactures chips for devices like the Apple iPhone. It reported a $1.58B net income or 90 cents/share. With the exclusion of one-time items, it earnings per share was $1.03 which matched the average analyst estimate.

The pressure quotient

Expectation has a way of getting varied reactions from different companies. In some cases it might put a lot of pressure on performance while in others, even the best performance will be the least pleasing. And this is exactly what is currently happening at QCOM. The company has exemplary top as well as bottom-line growth at almost 24% y-o-y in the last 5 years, but the stock managed to rise only 15%. In the most recent quarter, QUALCOMM, Inc (NASDAQ:QCOM) powered Galaxy S4, Samsung’s flagship device and numerous other devices with the indefatigable Snapdragon 600 chipset.

Strong  potential

In addition to this, its royalty collection has also gained momentum. This has been attributed to the rise in 3G and 4G device shipments in emerging as developed regions across the planet. With all this in view, it looks like QUALCOMM, Inc (NASDAQ:QCOM) is in a comfort zone when pitched against analysts’ estimates. The company is currently on a roll that has the potential to turn into a raging current.

About Lacee Page

Lacee Page is our White House and political campaign reporter. Lacee also covers justice and national law enforcement issues and congressional reporter focusing on the outputs of the legislative process: government spending, agency regulation and congressional oversight. Lacee received a national Edward R. Murrow for spot news award and the regional Associated Press award for best newscast. Lacee attended Riverview High School near Coshocton, and graduated from Ashland College in Ashland, Ohio with a Bachelor of Arts degree in Communications.

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