re: Reuters on the slide into earnings
The "Perps"
* Jeffrey Schlesinger of UBS Warburg
* Brian Modoff of Deutsche Bank
Anyone heard from always positive on QCOM SSB or First Union Wachovia?
>> Qualcomm Shares Slide Over Demand Concerns
July 25, 2002
New York
Reuters
Shares of wireless technology company Qualcomm Inc. (Nasdaq:QCOM - News) fell more than 12 percent on Thursday as an analyst cut his rating on the stock, citing concerns about weakening demand for its mobile phone chips, ahead of the company's quarterly earnings report.
Shares of the San Diego, California-based company were down $3.54 to $25.66 in midday trading on Nasdaq, hovering above its 52-week low of $24.24.
UBS Warburg analyst Jeffrey Schlesinger downgraded Qualcomm to "hold" from "buy" and reduced a 12-month price target to $32 a share from $38, citing concerns over lower-than-expected industry volumes.
"We remain concerned about incremental growth next year as demand in developed markets is unlikely to grow materially and visibility to the ramp in emerging markets ... remain extremely limited," said Schlesinger.
"Industry fundamentals will likely make it difficult for management not to lower guidance at some point over the next two quarters with respect to industry volumes and the corresponding implication to the company's financial metrics," Schlesinger said.
Brian Modoff, wireless equipment analyst with Deutsche Bank Securities, said he shared the same concerns on limited growth prospects.
"Our view is that the second half of the (calendar) year for them is going to be challenged," Modoff said.
Qualcomm is scheduled to report later on Thursday its fiscal third quarter results for the period ended in June.
Analysts expect the company to meet expectations after Qualcomm said late last month it expected earnings to meet or exceed the high end of its previous forecast of 21 cents to 23 cents a share. On average, analysts polled by market research firm Thomson First Call expect earnings of 22 cents.
Qualcomm makes chips for wireless voice and data based on its own Code Division Multiple Access, or CDMA technology. CDMA is the dominant standard in the United States and the second-most widely used technology in the world. <<
- Eric - |
