CORRECTED-UPDATE 2-Qualcomm quarterly revenue beats Street; stock up
(Corrects analyst's last name in fourth paragraph)
SAN FRANCISCO, July 24 (Reuters) - Shares of Qualcomm Inc rose more than 3 percent after the leading mobile chipmaker posted third-quarter results that met expectations and eased concerns about slower growth of smartphone sales.
Few semiconductor companies have benefited more from the mobile revolution than Qualcomm, but the supplier of chips for Apple Inc's iPhones and Android devices has begun to face pressure as growth in smartphone sales shifts to Asia.
In its fiscal third-quarter report on Wednesday, Qualcomm met expectations for earnings and was ahead on revenue.
"It looks like momentum is continuing. It doesn't feel like the smartphone story is over," Bernstein analyst Stacy Rasgon said.
In Apple's quarterly report on Tuesday, the Cupertino, California company said it sold more iPhones than Wall Street had expected.
Network operators worldwide are shifting to a high-speed wireless technology known as long-term evolution (LTE) that Qualcomm is a leader in, helping the company grow much faster than Intel Corp and other suppliers of chips for personal computers.
But Qualcomm faces competition from small Asian mobile chipmakers as well as market leader Intel, whose mobile push is showing promising signs after failing to attract device makers in recent years.
"We watch those who we consider our competitors very closely," said Qualcomm Senior Vice President Bill Davidson. "Intel hasn't seen great success in terms of market traction yet but we clearly watch them just based on their capabilities."
Qualcomm posted fiscal third-quarter revenue of $6.24 billion and net income of $1.58 billion, or 90 cents a share, boosted by growing demand for smartphones in Asia.
It said revenue in the current quarter, which ends in September, would range from $5.9 billion to $6.6 billion.
Analysts on average had expected third-quarter revenue of $6.055 billion and fourth-quarter revenue of $6.293 billion, according to Thomson Reuters I/B/E/S.
"This is better than the Street had been girding for, given what's been going in the smartphone markets," said Williams Financial analyst Cody Acree.
For the fiscal third quarter, non-GAAP earnings per share were $1.03, in line with expectations.
Qualcomm estimated fiscal 2013 non-GAAP earnings of $4.48 to $4.56 per share. Its previous forecast was $4.40 to $4.55.
Shares of Qualcomm rose 3.53 percent in extended trade after closing down 1.46 percent at $61.39 on Nasdaq. (Reporting by Noel Randewich; Editing by Richard Chang)