Qualcomm Inc. (NASDAQ: QCOM)
On July 20, Qualcomm posted a 35 percent surge in third quarter earnings on robust demand for its chips that are used in smart phones and data-centric devices. The company's quarterly earnings topped Street estimates, as did revenue.Adjusted EPS = $0.73; Street estimated = $0.71Revenue = $3.62 billion; Street estimated = $3.59 billionThe company has reiterated a cash dividend of $0.215 per share payable September 23, to stockholders as of August 26.Looking ahead to the fourth quarter, Qualcomm expects adjusted earnings of $0.75 to $0.80 per share and revenue of $3.86 billion to $4.16 billion, while Street predicts profit of $0.76 per share on revenue of $3.93 billion. The company expects fourth-quarter wireless chip (Mobile Station Modem) shipments of 120 million to 125 million units.For the full year, Qualcomm raised its adjusted earnings guidance to range of $3.15 to $3.20 per share from previous forecast of $3.05 to $3.13 per share. The company also increased its revenue outlook to range of $14.7 billion to $15.0 billion from previous range of $14.1 billion to $14.7 billion. Street analysts predict profit of $3.15 per share on revenues of $14.73 billion for the full year. Reuters

Qualcomm shares jumped as much as 9.2 percent Thursday, a day after the designer of mobile-phone chips estimated next year's revenue could reach as high as $19 billion.

The forecast appeared to indicate the mobile phone sector is essentially immune to downturns besetting the world economy.

Qualcomm shares closed at $56.11, up 7.5 percent, Earlier shares of the San Diego-based developer rose more than they had since 2009, reaching $56.96.

After the Wednesday close, Qualcomm said fourth-quarter net income jumped 22 percent to $1.06 billion, or 62 cents a share, as revenue leaped nearly 40 percent to $4.12 billion. For the year, Qualcomm reported revenue rose 36 percent to a record $14.96 billion, with net income of $4.26 billion, or $2.52 a share.

Qualcomm chips are deployed on many of the world's most popular mobiles and smartphones from makers including Apple, Samsung Electronics, Motorola Mobility and others. The majority of Qualcomm chips run on code division multiplex access (CDMA) technology, which is used throughout U.S. networks operated by AT&T, Verizon Wireless and Sprint-Nextel.

But the company is also gambling on the growing tablet market with the new Snapdragon family of semiconductors for the tablet sector, where they operate on Google's Android OS. More recently, Qualcomm CEO Paul Jacobs said they will also run on Microsoft's Windows 8 OS due for mass shipment next year.

Like most technology leaders, Qualcomm also reported holding a huge pile of cash and investments. They reached $20.9 billion in September, up $700 million from the third quarter and $2.5 billion from 2010.

Besides paying a quarterly dividend of 21.5 cents a share, Qualcomm said it will continue a modest buyback campaign. Last quarter, the company bought back shares valued at $142 million.

Qualcomm's market capitalization is $94.15 billion. Its enterprise value is $78.2 billion.

Contact David Zielenziger at d.zielenziger@ibtimes.com

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