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Qualcomm (QCOM) Tumbles as Revenue Guidance Disappoints

Tickers in this article: QCOM

NEW YORK (TheStreet) -- Mobile chipmaker Qualcomm  has tumbled 4% to $66.98 after market close as the company projects poor revenue guidance for the first quarter ending December.

First-quarter revenue is expected between $6.3 billion and $6.9 billion, while earnings should be in the range of $1.10 and $1.20 a share. Analysts surveyed by Yahoo! Finance were looking for $1.29 a share on $6.99 billion.

For the fourth quarter, the San Diego-based company recorded earnings $1.05 a share on revenue 33% higher than a year ago of $6.48 billion. Though earnings were short 3 cents, revenue beat by $130 million due in part to increasing smartphone use in China.

"I am very pleased with our record financial performance this year as we delivered revenues of $25 billion, up 30% versus last year. Our technologies underpin the global growth of wireless data, and our semiconductor solutions are used across the industry's flagship smartphones," said CEO Dr. Paul E. Jacobs in a statement.

TheStreet Ratings team rates Qualcomm Inc as a Buy with a ratings score of A+. The team has this to say about their recommendation:

"We rate Qualcomm Inc (QCOM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, impressive record of earnings per share growth and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."