CORRECTED-UPDATE 2-Qualcomm beats street, raises guidance, shares rise
(Corrects EPS in bullet point one to $1.26 instead of $1.28, adds dropped percentage in bullet point 4)
* Q1 EPS $1.26 vs Street view $1.13
* Q1 Rev $6.02 bln vs Street view $5.9 bln
* Increases full-year revenue, EPS view
* Shares rise 6.6 pct in late trade
By Sinead Carew
NEW YORK, Jan 30 (Reuters) - Qualcomm Inc beat Wall Street expectations for its fiscal first-quarter earnings and revenue and raised its financial targets for 2013 due to growing demand for smartphones and high-speed wireless services.
Qualcomm shares rose 6.6 percent in late trade on Wednesday as the bright outlook from the leading supplier of chips for cellphones wowed investors in contrast with sluggish demand at other chip companies such as Texas Instruments and Broadcom Corp.
The San Diego-based chip maker is benefiting from strong demand for smartphones and a move by network operators around the world to a high-speed, wireless technology known as Long Term Evolution, where Qualcomm is years ahead of its rivals.
"That trend is continuing to work in Qualcomm's favor. They're the only viable option for LTE right now," said MKM Partners analyst Daniel Berenbaum. "It's a very strong quarter and the guidance is very strong."
As well as supplying chips for cellphones and tablet computers, Qualcomm also receives royalty payments from any cellphone makers that do not use its chips.
"It looks like in the quarter, a little bit of the upside came from chipsets," said Berenbaum. "In the guidance, chipsets came in around expectations. It looks like royalties are the upside to guidance."
Qualcomm raised its full-year revenue guidance to a range of $23.4 billion to $24.4 billion from its previous target of $23 billion to $24 billion.
It raised its earnings per share target to a range of $4.25 to $4.45 from its previous forecast range of $4.12 to $4.32.
Qualcomm posted a profit of $1.91 billion or $1.09 per share for the quarter ended Dec. 30, compared with a profit of $1.4 billion or 81 cents per share in the year-ago quarter.
Excluding unusual items, the San Diego-based company reported earnings per share of $1.26 compared with Wall Street expectations of $1.13, according to Thomson Reuters I/B/E/S.
Revenue rose to $6.02 billion from $4.68 billion in the year-ago quarter and compared with Wall Street expectations for $5.9 billion, according to Thomson Reuters I/B/E/S.
Qualcomm shares rose to $67.75 in late trade after closing at $63.53 in the regular Nasdaq session. The last time its shares reached this level in regular Nasdaq trading was in early April 2012. Its shares reached a post-dotcom bubble high of $68.87 in late March of 2012.
Qualcomm said its chief financial officer, Bill Keitel, is retiring and will be replaced by George Davis, currently CFO of Applied Materials. (Reporting By Sinead Carew; Editing by Leslie Gevirtz)