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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: pyslent who wrote (111868)	1/30/2002 12:15:51 AM
From: Wyätt Gwyön	Read Replies (2) \| Respond to of 152472

"we're talkin' maybe 4 or 5 hundred million CDMA handsets, with most of the high end and many devices." That gives QCOM about $5 eps how does that give them $5 eps? i would like to see how this is done, because i don't see how it works out that way. here's my thinking: 1. QCOM now has about 757MM shares outstanding, and this amount has continued to grow. assuming it only grows 3% per year (conservative estimate imho), that reaches 878MM shares in year 5. 2. $5 * 878MM = $4.39BILLION in earnings 3. QCOM's ttm operating margin is 22.5%. applying this margin to $4.39BB suggests revenues would need to be around $19.5BILLION. 4. $19.5BILLION / 400MM handsets = $48.75 per phone of revenue for QCOM. $48.75 of revenue for each handset sounds like a lot of revenue per handset to me. of course, i just used operating margin to do the calculation. net margin, if anybody cares about that in five years, would presumably be lower if QCOM ever needs to pay taxes on all the billions it is supposed to rake in.