Qualcomm Seen As 'Good Place to Be'
Mary Crane, 05.04.06, 9:51 AM ET
<<RBC analyst Apjit Walia said he continues to recommend Qualcomm as a "good place to be right now," after the company raised its June-quarter guidance.
Management said it now expects revenues to meet or exceed the high end of its prior revenue guidance of $1.77 billion to $1.87 billion.
Earnings per share are now expected to be in the 38 cents to 40 cents range, higher than the previous 36 cents to 38 cents range.
Qualcomm (nasdaq: QCOM - news - people ), which produces wireless technology and chips, said the higher guidance reflected higher-than-expected demand for its Mobile Station Modern chipsets, up to 53 million to 56 million during the quarter compared to approximately 36 million in the year-ago quarter.
Walia said Qualcomm continues to anticipate handset shipments of around 62 million to 64 million at an average selling price of $203.
Despite a cloudy industry backdrop with supply and inventories continuing to rise, Walia said Qualcomm's story is a good one.
"At this point, we continue to highlight Qualcomm as one of the few secular names long-term investors stick to."
He raised his earnings-per-share estimate for 2006 to $1.61 from $1.57 and his 2006 revenue forecast to $7.45 billion from $7.36 billion.
Likewise, Walia said he expects earnings per share to reach $1.92 in 2007, up from his previous estimate of $1.88, as well as revenues of $8.93 billion, up from his previous estimate of $8.74 billion.>> |
