* Sees double-digit earnings per share, revenue growth
* Says economy effect "somewhat muted"
* Shares down 0.7 pct on Nasdaq
NEW YORK, Nov 15 Chip supplier Qualcomm Inc
said on Thursday that it expects a compound annual
growth rate of at least 10 percent for its revenue and earnings
per share over the next five years.
Chief Executive Paul Jacobs said he expects continued growth
from sales of chips for devices including smartphones and tablet
computers despite a weak global economy.
Due to increasing demand for these devices, Jacobs said
during his presentation at the company's annual investor day,
the weak economy has had a "somewhat muted" effect on Qualcomm.
"The fact they're still looking at strong growth, that they
have relatively conservative assumptions behind that growth, is
promising," said Bernstein analyst Stacy Rasgon.
Given that semiconductor companies such as Intel Corp
and Texas Instruments have been giving bleak
forecasts in their quarterly reports, Rasgon said Qualcomm's
guidance looked impressive compared with his expectations for
the semiconductor industry.
"We're going to be lucky if semiconductors are flat next
year and they're guiding up," he said.
Rasgon said he was relieved Qualcomm was not forecasting a
big dip in operating margins for its chip business from its 2012
margin of 18.9 percent. Its slides showed a forecast for 2013
margins in a range of 18.5 percent to 20.5 percent.
On Nov. 7 Qualcomm reported fiscal year 2012 earnings per
share of $3.51, up 39 percent from the year before and revenue
of $19.12 billion, up 28 percent from the year before. Its
fiscal year ended Sept. 30.
The executive also said that he doesn't seen any reason to
change Qualcomm's dividend policy and that the company would
balance its return of money to shareholders between dividends
and share buybacks.
In its fiscal year 2012 it bought back about $1.3 billion
worth of stock and paid out $1.6 billion in dividends.
Qualcomm shares were down 0.7 percent at $61.31 in afternoon
trade on Nasdaq. In comparison the index of
semiconductor stocks was down more than 1 percent.