Qualcomm Inc. (NASDAQ: QCOM): Q3 Earnings Preview 2011

Qualcomm Inc. (NASDAQ: QCOM), the world largest phone-chip maker, is scheduled to release its fiscal third-quarter earnings after the closing bell on Wednesday, July 20, 2011. Analysts, on average, expect the company to report earnings of 71 cents per share on revenue of $3.59 billion. In the year ago period, the company reported earnings of 57 cents per share on revenue of $2.70 billion.

Qualcomm Inc. engages in the development, design, manufacture, and marketing of digital wireless telecommunications products and services. The company operates in four segments: Qualcomm Code Division Multiple Access Technologies, Qualcomm Technology Licensing, Qualcomm Wireless and Internet, and Qualcomm Strategic Initiatives.

In the preceding fiscal second quarter, the San Diego, California-based companny's net income was $999 million, or 59 cents a share, compared with a profit of $774 million, or 46 cents a share, in the same period last year. On an adjusted basis, the company earned 86 cents a share in the first quarter. Revenue increased to $3.875 billion from $2.663 billion in the prior year quarter.. Analysts, on average, expected the company to report earnings of 80 cents per share on revenue of $3.62 billion. 

At its last earnings call in April, the company said that it expects GAAP earnings to be in the range of 60 cents to 64 cents per share, non-GAAP earnings of 68 cents to 72 cents per share and revenues of $3.35 billion to $3.65 billion.

The company also raised its fiscal year 2011 guidance. The company now expects full-year GAAP earnings per share in the range of $2.51 to $2.59 per share, from the previous outlook of $2.32 to $2.46 per share. The company now expects fiscal 2011 non-GAAP earnings to be between $3.05 to $3.13 per share, compared to prior outlook of $2.91 to $3.05 per share. The company raised its revenues outlook to a range of $14.1 billion to $14.7 billion from the prior estimates of $13.6 billion- $14.2 billion.

Qualcomm has benefited from strong consumer demand for smartphones and tablets, as well as other device categories. The company's next-generation snapdragon platform is making tremendous progress. A number of groundbreaking devices like Verizon iPhone, Google's Nexus One, HTC Desire, Sprint's EVO 4G and the Dell Streak tablet are powered by Snapdragon processor. Qualcomm still draws royalties from the GSM iPhone on AT&T (NYSE:T) through its patents, though the device does not employ Qualcomm's chips. The company was also a key launch partner for Windows Phone 7 and has its chips in the next generation of Palm devices coming from H-P later this year, including the TouchPad tablet.

The global market for cellular baseband chipsets surged 20% last year to $13.2 billion, according to wireless research firm Strategy Analytics.

Qualcomm also stands to benefit from growing demand for 3G data services. The company collects a royalty for every 3G device sold worldwide. 3G technology adoption increases the addressable market for which it sells chipsets In addition, it holds patents on CDMA technology and earns royalties on all CDMA mobile phone sales. In the near term, Verizon(NYSE: VZ) CDMA iPhone looks to be a boom for Qualcomm. Apple's (NASDAQ: AAPL) introduction of a CDMA version of the iPhone means Qualcomm will collect not only a patent royalty as it does with the AT&T iPhone, but since the Verizon iPhone also uses Qualcomm's wireless chip, the company will enjoy an added pop to its chip revenue.

Emerging super-fast 4G Long Term Evolution (LTE) technologies have become another boost for Qualcomm. The growing acceptance of LTE technology has prompted the mobile handset manufacturers to develop phones that will be compatible with this network. The 3G to LTE transition is underway globally with 156 operators in 64 countries currently investing in this transition. In the US, Verizon is rolling out its LTE network and AT&T (NYSE:T) plans to start its roll out in mid-2011. 

Full Disclosure: None.

Qualcomm Inc. (NASDAQ: QCOM): Q2 Earnings Preview 2011

Qualcomm Inc. (NASDAQ: QCOM), the world largest phone-chip maker, is scheduled to release its fiscal second-quarter earnings after the closing bell on Wednesday, April 20, 2011. Analysts, on average, expect the company to report earnings of 80 cents per share on revenue of $3.62 billion. In the year ago period, the company reported earnings of 59 cents per share on revenue of $2.66 billion.

Qualcomm Inc. engages in the development, design, manufacture, and marketing of digital wireless telecommunications products and services. The company operates in four segments: Qualcomm Code Division Multiple Access Technologies, Qualcomm Technology Licensing, Qualcomm Wireless and Internet, and Qualcomm Strategic Initiatives.

In the preceding fiscal first quarter, the San Diego, California-based companny's net income was $1.17 billion or $0.71 per share, compared to $0.84 billion or $0.50 per share in the same period last year. On an adjusted basis, the company earned 82 cents a share in the first quarter. Revenue increased to $3.35 billion from $2.67 billion. Analysts, on average, expected the company to report earnings of 72 cents per share on revenue of $3.20 billion. 

At its last earnings call in January, the company said that it expects fiscal second quarter GAAP earnings per share in the range of $0.50 to $0.54. Non-GAAP earnings per share is estimated in the range of $0.77 to $0.81. Revenues for the quarter is forecast in the range of $3.45 billion to $3.75 billion. Qualcomm also said that it expects the average selling price of CDMA phones to rise about 5% in the 2011.

The company also raised its fiscal year 2011 guidance. The company now expects full-year GAAP earnings per share in the range of $2.32 to $2.46, compared to its previous forecast in the range of $2.08 to $2.22. Non-GAAP earnings per share is now forecast in the range of $2.91 to $3.05, compared to its previous forecast in the range of $2.63 to $2.77. Revenues for the year are now estimated in the range of $13.6 billion to $14.2 billion, compared to its earlier estimates in the range of $12.4 billion to$13.0 billion.Management also stated that its guidance excludes the expected positive outcome from its ongoing arbitration with Panasonic. Panasonic alleges that Qualcomm breached a licensing agreement and seeks the return of royalties paid to Qualcomm.

Qualcomm has benefited from strong consumer demand for smartphones and tablets, as well as other device categories. The company's next-generation snapdragon platform is making tremendous progress. A number of groundbreaking devices like Verizon iPhone, Google's Nexus One, HTC Desire, Sprint's EVO 4G and the Dell Streak tablet are powered by Snapdragon processor. Qualcomm still draws royalties from the GSM iPhone on AT&T (NYSE:T) through its patents, though the device does not employ Qualcomm's chips. The company was also a key launch partner for Windows Phone 7 and has its chips in the next generation of Palm devices coming from H-P later this year, including the TouchPad tablet.

Qualcomm also stands to benefit from growing demand for 3G data services. The company collects a royalty for every 3G device sold worldwide. 3G technology adoption increases the addressable market for which it sells chipsets In addition, it holds patents on CDMA technology and earns royalties on all CDMA mobile phone sales. In the near term, Verizon(NYSE: VZ) CDMA iPhone looks to be a boom for Qualcomm. Apple's (NASDAQ: AAPL) introduction of a CDMA version of the iPhone means Qualcomm will collect not only a patent royalty as it does with the AT&T iPhone, but since the Verizon iPhone also uses Qualcomm's wireless chip, the company will enjoy an added pop to its chip revenue.

Emerging super-fast 4G Long Term Evolution (LTE) technologies have become another boost for Qualcomm. The growing acceptance of LTE technology has prompted the mobile handset manufacturers to develop phones that will be compatible with this network. The 3G to LTE transition is underway globally with 156 operators in 64 countries currently investing in this transition. In the US, Verizon is rolling out its LTE network and AT&T (NYSE:T) plans to start its roll out in mid-2011. 

During the quarter in review,  Qualcomm's board of directors has approved a 13 percent increase in the company's quarterly cash dividend.

Among other developments,  the company said last month that it did not foresee "any significant impact" to its supply chain from the earthquake and tsunami that struck Japan last week. "Qualcomm has multiple, geographically diverse sources for supply as well as production processes specifically designed to enable us to mitigate disruptions in our supply chain," read the statement.

The company's stock currently trades at a forward P/E  (fye Sep 26, 2012) of 16.60 and PEG ratio (5 yr expected) of 1. In terms of stock performance, Qualcomm shares have gained nearly 25 percent over the past year.

Full Disclosure: None.

Qualcomm Inc. (NASDAQ: QCOM): Q1 Earnings Preview 2011

Qualcomm Inc. (NASDAQ: QCOM), the world largest phone-chip maker, is scheduled to release its fiscal first-quarter earnings after the closing bell on Wednesday, January 26, 2011. Analysts, on average, expect the company to report earnings of 72 cents per share on revenue of $3.20 billion. In the year ago period, the company reported earnings of 62 cents per share on revenue of $2.67 billion.

Qualcomm Inc. engages in the development, design, manufacture, and marketing of digital wireless telecommunications products and services. The company operates in four segments: Qualcomm Code Division Multiple Access Technologies, Qualcomm Technology Licensing, Qualcomm Wireless and Internet, and Qualcomm Strategic Initiatives.

In the preceding fiscal fourth quarter, the San Diego, California-based companny's net income was $865 million, or 53 cents a share, from $803 million, or 48 cents a share, in the year-ago quarter. On an adjusted basis, the company earned 68 cents a share in the latest quarter. Revenue increased to $2.95 billion from $2.69 billion. Analysts, on average, expected the company to report earnings of 59 cents per share on revenue of $2.85 billion. 

At its last earnings call in November, the company said that it expects fiscal first quarter earnings in the range of 58 cents to 62 cents per share and non-GAAP earnings in a range of 70 cents to 74 cents per share.  For the fiscal year 2011, the company expects earnings in the range of $2.08 to $2.22 per share and non-GAAP earnings in a range of $2.63 to $2.77 per share. Full-year revenues are expected to be in a range of $12.4 billion to $13.0 billion. The company said that it will be able to raise its revenue and EPS by at least 10% for the next five years. 

Qualcomm has benefited from strong consumer demand for smartphones. According to analysts, smartphone shipment as a percentage of total mobile phone shipment will increase from 15% in 2009 to 45% by 2014.The company's next-generation snapdragon platform is making tremendous progress. A number of groundbreaking devices like Google's Nexus One, the HTC Incredible, Sprint's EVO 4G and the Dell Streak tablet are powered by Snapdragon processor. 

Qualcomm also stands to benefit from growing demand for 3G data services. The company collects a royalty for every 3G device sold worldwide. 3G technology adoption increases the addressable market for which it sells chipsets In addition, it holds patents on CDMA technology and earns royalties on all CDMA mobile phone sales. In the near term, Verizon(NYSE: VZ) CDMA iPhone looks to be a boom for Qualcomm. Apple's (NASDAQ: AAPL) introduction of a CDMA version of the iPhone means Qualcomm will collect not only a patent royalty as it does with the AT&T iPhone, but since the Verizon iPhone also uses Qualcomm's wireless chip, the company will enjoy an added pop to its chip revenue.

Emerging super-fast 4G Long Term Evolution (LTE) technologies have become another boost for Qualcomm. The growing acceptance of LTE technology has prompted the mobile handset manufacturers to develop phones that will be compatible with this network. A major near-term catalyst for Qualcomm is the expected launch of CDMA iPhone. The 3G to LTE transition is underway globally with 156 operators in 64 countries currently investing in this transition. In the US, Verizon is rolling out its LTE network and AT&T (NYSE:T) plans to start its roll out in mid-2011. 

Among other developments, Qualcomm recently announced its acquisition of Atheros (NASDAQ: ATHR) for $3.2 billion to diversify its product portfolio beyond mobile phones and expand its addressable market into game consoles, media players, tablets and TVs. This acquisition will give Qualcomm a tremendous opportunity to leverage Atheros’ Wi-Fi technology capability in non-handset devices and become more competitive with players like Broadcom (BRCM), Marvell (NASDAQ: MRVL), Infineon (now acquired by Intel (INTC)) and Texas Instruments (NYSE: TXN).

In terms of stock performance, Qualcomm shares have gained nearly 40 percent over the past year.

Full Disclosure: None.

Qualcomm (NASDAQ: QCOM): Q4 Earnings Preview 2010

Qualcomm Inc. (NASDAQ: QCOM), the world largest phone-chip maker, is scheduled to release its fiscal fourth quarter earnings after the closing bell on Wednesday, November 3, 2010. Analysts, on average, expect the company to report earnings of 59 cents per share on revenue of $2.85 billion. In the year ago period, the company reported earnings of 64 cents per share on revenue of $2.68 billion.

Qualcomm Inc. engages in the development, design, manufacture, and marketing of digital wireless telecommunications products and services. The company operates in four segments: Qualcomm Code Division Multiple Access Technologies, Qualcomm Technology Licensing, Qualcomm Wireless and Internet, and Qualcomm Strategic Initiatives.

Thanks in part to a surge in demand for mobile phones and computers, worldwide semiconductor sales reached a record $26.5 billion in September, up 2.9 percent from the prior month, the Semiconductor Industry Association said recently.  Sales for the third quarter of 2010 amounted to $79.4 billion, a 6.1% increase from the previous quarter when sales were $74.8 billion. Third quarter sales were 26.2% higher than the $62.9 billion for the like period in 2009.  The SIA expects sales of microchips will rise 28 percent to $290.5 billion this year. 

In the preceding fiscal third quarter, the San Diego, California-based company's net income was $767 million, or 47 cents a share, compared $737 million, or 44 cents a share, in the comparable period last year. On an adjusted basis, the company earned 57 cents a share. Revenue slipped to $2.71 billion from $2.75 billion. Analysts, on average, expected the company to report earnings of 54 cents per share on revenue of $2.63 billion. 

At its last earnings call in July, the company lifted its full-year financial outlook.  For full year 2010, the company expects earnings on a GAAP basis to be in the range of $1.82 to $1.86 per share and revenues in the range of $10.70 billion to $11.0 billion. It had previously forecast GAAP earnings to be in the range of $1.71 to $1.82 per share and revenues to be in the range of $10.4 billion to $11 billion. On a pro forma basis, the company expects earnings to be in the range of $2.33 to $2.37 per share and revenues in the range of $10.7 billion to $11 billion. It had previously estimated earnings between $2.21 to $2.32 and revenues between $10.4 billion to $11 billion. The company expects CDMA based device growth of approximately 23% in calendar year 2010

The company expects fourth quarter earnings on a GAAP basis to be in the range of 39 cents or 43 cents per share. On a pro forma basis, earnings are anticipated in the range of 55 cents to 59 cents per share. Revenue is expected to be in the range of $2.67 billion to $2.93 billion. The company expects MSM shipments to increase to approximately 106 million to 111 million units during fiscal fourth quarter, driven primarily by greater demand for smartphones and strength in China and North America. The guidance still appears to be conservative, given the accelerated growth in smartphone market, rising CDMA penetration and increased 3G adoption in emerging markets.

According to market research firm iSuppli, smartphone shipments smartphone shipments will rise 105% to 506 million units in 2014 from 246.9 million in 2010.  According to Informa, one in every five phones sold globally in 2010 will be a smartphone. By 2012, approximately one in every three is projected to be a smartphone. The company's next-generation snapdragon platform is making tremendous progress. Qualcomm's chipsets are used in majority of Android-based smartphones. A number of groundbreaking devices like Google's Nexus One, the HTC Incredible, Sprint's EVO 4G and the Dell Streak tablet are powered by Snapdragon processor.

Qualcomm also stands to benefit from growing demand for 3G data services. The company collects a royalty for every 3G device sold worldwide. In addition, it holds patents on CDMA technology and earns royalties on all CDMA mobile phone sales.

Among other developments, Qualcomm recently acquired iSkoot Technologies Inc., a newly-formed corporation that has recently received substantially all of the assets of iSkoot, Inc.

In terms of stock performance, Qualcomm shares have lost nearly 3 percent since the beginning of the year.

Full Disclosure: None.