Qualcomm Posts Profit Gain

Wireless technology company Qualcomm Inc. posted a higher fiscal first-quarter profit Wednesday on strong cellphone demand, but its shares fell as some investors were disappointed by its financial outlook.

San Diego-based Qualcomm said it expected second-quarter earnings of 35 cents to 37 cents a share, excluding one-time items, on revenue of $1.63 billion to $1.73 billion. This compares with average analyst estimates for earnings of 36 cents a share on revenue of $1.73 billion, according to Reuters Estimates.

Stifel Nicolaus & Co. analyst Cody Acree said that Qualcomm’s quarterly revenue was slightly lower than analysts’ estimates and that earnings and revenue guidance was disappointing.

“Their earnings are in line with expectations for this quarter and the next, but there was no upside and the stock was priced for some degree of upside,” Acree said.

Qualcomm shares traded at $46.60 after hours, down from their close of $47.58.

Net income for the quarter ended Dec. 25 rose to $620 million, or 36 cents a share, from $513 million, or 30 cents, a year earlier. Excluding items such as its investment arm, Qualcomm said it earned 39 cents a share.

Revenue rose to $1.74 billion from $1.39 billion a year earlier.

On average, analysts were expecting first-quarter earnings of 38 cents a share on revenue of $1.76 billion, according to Reuters Estimates.