(Corrects bullet point one to $1.26 instead of $1.28)
* 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 pct in late trade
By Sinead Carew
NEW YORK, Jan 30 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 percent in late trade on Wednesday as
the outlook from the leading supplier of chips for cellphones
wowed investors in contrast with sluggish demand at chip makers
such as Texas Instruments and Broadcom Corp.
The company, which also announced the retirement of its
chief financial officer on Wednesday, said it was seeing strong
growth in emerging markets such as China and Latin America.
But outgoing CFO Bill Keitel said on the company's
conference call with analysts that the outlook also reflects
macro economic weakness.
"Given continued global macroeconomic uncertainties, we are
continuing to maintain a cautious outlook for the year ahead,"
said Keitel, who will be replaced by George Davis, currently CFO
of Applied Materials, in March.
San Diego-based Qualcomm 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
(LTE), where Qualcomm is ahead of 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 $67.40 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.
(Reporting By Sinead Carew; Editing by Leslie Gevirtz)