Qualcomm Drops Sharply on Weak Guidance

Tickers in this article: QCOM

NEW YORK (TheStreet) -- Qualcomm shares moved lower by 4.89% to $62.77 after the mobile chip giant beat Wall Street expectations but gave a weak earnings forecast.

For the third quarter, Qualcomm said it expects non-GAAP earnings to be between 97 cents and $1.05 a share, on a sales range between $5.8 billion and $6.3 billion. Analysts polled by Thomson Reuters are looking for $1.04 a share in earnings on $5.89 billion in sales.

San Diego-based Qualcomm earned $1.17 a share on $6.12 billion in revenue for its fiscal second quarter. Analysts polled by Thomson Reuters were looking for $1.17 a share on $6.09 billion in revenue.

We delivered another strong quarter as the worldwide adoption of smartphones continues," said Qualcomm CEO Paul Jacobs in the press release. "Looking forward, we are seeing strong traction with our new Qualcomm Snapdragon 600 and 800 processors, and we continue to expect healthy growth in 3G and 3G/4G multimode devices around the world. We are pleased to be raising our calendar 2013 3G/4G device shipment estimates and our revenue and earnings guidance for fiscal 2013."

The company ended the quarter with $30.5 billion in cash and securities, up from $26.6 billion in the year-ago quarter.

Shares of Qualcomm finished the session higher, gaining 0.99% to close at $66.

--Written by Chris Ciaccia in New York

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