Wireless chip maker Qualcomm, Inc. (QCOM) said Wednesday that its fiscal third quarter profit fell marginally from last year, slightly beating analyst estimates.
Qualcomm offered a somewhat cautious outlook for the current quarter, however, sending its shares downward in early trading Thursday.
The San Diego-based company reported fiscal third quarter net income of $737 million, or 44 cents per share, down 1.5% from $748 million, or 45 cents per share, in the year-ago period. Excluding one-time items, the company saw adjusted earnings of 54 cents per share.
Revenue fell slightly in the latest quarter, to $2.75 billion from $2.76 billion last year.
On average, Wall Street analysts expected a profit of 52 cents per share, excluding items, on revenue of $2.73 billion.
Qualcomm CEO Paul Jacobs said that he was ''very pleased with our strong operating performance in this uncertain economic environment.''
Looking ahead, the company forecast fiscal fourth quarter earnings to range from $2.55 billion to $2.75 billion, the low-end of which is well below the average analyst estimate for $2.71 billion.
Qualcomm also raised its full-year earnings forecast to a range of $10.25 billion to $10.45 billion, up from prior guidance of $9.85 billion to $10.25 billion. Analysts currently expect $10.39 billion.
Despite the third quarter earnings beat and higher full-year guidance, Qualcomm shares fell $2.21, or -4.4%, in early trading Thursday.
The Bottom Line
We had removed shares of QCOM from our ''Recommended'' list back on Sept.25, when the stock traded at $46.54. The company has a dividend yield of 1.40%, based on last night’s closing stock price of $48.45. The company has technical support in the $42-43 price area. If the shares can firm up, we see overhead resistance around the $50-54 price levels. We would remain on the sidelines for now.
Qualcomm, Inc. (QCOM) is not recommended at this time, holding a Dividend.com DARS Rating of 3.4 out of 5 stars.
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