Excerpts from from Dow Jones
NEW YORK (Dow Jones)--Shares of Qualcomm Inc. (QCOM) stumbled 7.6% Wednesday after two analysts questioned the firmness of the company's earnings, largely because of its exposure to troubled markets in Japan and South Korea. "The reason the stock is down is because of the concern about earnings," said Jeff Matthews, owner of Ram Partners, a Greenwich, Conn., investment firm.
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A report by Cowen & Co. analyst Wojtek Uzdelewicz said the company probably will hit the firm's fiscal first quarter earnings estimate of 48 cents to 49 cents a share, but added the company's earnings for fiscal 1998 could fall 25 cents to 30 cents short of the firm's $2.25 estimate.
Uzdelewicz said an accounting change is likely to result in a one-time boost to earnings in the first fiscal quarter.
Citing the economic crisis in Asia, ABN AMRO Chicago Corp. analyst Kenneth Leon said, "our estimate at 51 cents may be vulnerable."
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Both analysts said the quarter is likely to contain good news, including strong orders and robust sales of wireless handsets. Leon said handset sales in the U.S. could come in ahead of forecasts, possibly compensating for any shortfall in Asia.
Uzdelewicz, who has a long-term buy rating on the stock, said the company is "well-positioned for long-term sustainable growth."
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