Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 165.03

+1.0%

3:59 PM EST

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To: Jeff Vayda who wrote (22092)	1/28/1999 3:05:00 PM
From: mmeggs	Read Replies (1) of 152472

Cabi's take on ERICY is bullish, of course: Q4:98 Earnings Yield Better-Than-Expected Strength; New Handsets Should Be a Hit. Summary Excluding extraordinary gains, Ericsson reported Q4:98 results this morning of $0.28 (SEK 2.30) versus our estimate of $0.29 (SEK 2.24) and the $0.26 Street consensus. The company will discuss Q4:98 results on a conference call to be held at 10:00 AM EST. Q4:98 results on the whole appear to reflect Ericsson management's forewarned softness during December's profit warning for the quarter due to primarily to two issues: 1) lower mobile phone ASPs and 2) continued weaknesses stemming from the company's Infocom division. Ericsson also introduced its new handset platform, a 3V model called the T-28, that should debut in the GSM dual-band factor in the European markets. With volume shipments expected in Q3:99, we expect the handset to make a meaningful impact in Q4:99. We reiterate our Strong Buy rating. Our 12-month price target is $35-40. It's laughable. When QCOM has declining ASPs, they have "limited visiblity" and "margin pressure." He pins his hopes for growth on new handsets to improve market share when the things don't even come out until 3rd quarter, at best, and won't add to earnings until Q4. This all at a time when wireless growth is exploding and competitors are already introducing new models superior to those ERICY has available. Adjusting next two quarters down, but somehow calls the results "better than expected strength." The only thing I'm surprised about is that ERICY is up today. mmeggs

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