Strong Sales Boost Profit Forecast for Qualcomm

Qualcomm Inc. raised its earnings forecast for the current quarter based on robust sales of chips for third-generation cellphones.

The San Diego-based company, which makes chips for mobile phones and licenses out its wireless technology, said it expected net income to be as much as 33 cents a share in the fiscal first quarter ending Dec. 25, up from 30 cents to 32 cents.

Excluding results from its investment unit and stock-based compensation costs, Qualcomm said it expected earnings as high as 39 cents a share, up from 36 to 38 cents a share. Analysts expect 37 cents a share, according to Thomson Financial.

The company also believes that it will hit the high end of its revenue estimate of $1.67 billion to $1.77 billion. Qualcomm shares fell 79 cents to $44.21.