QCOM - Qualcomm, Inc - exceeded earnings estimates in four straight quarters

Qualcomm was a stock that soared 2600% in 1999 and then got hit in the bear market. The company is back in a big way. QCOM's CDMA technology has it uniquely positioned in the high-growth wireless industry. It has exceeded earnings estimates in four straight quarters. This year's earnings estimates have risen six cents to $1.76 over the past 60 days. Analysts project long-term growth of 19.51%. Full Analysis Qualcomm, Inc. (QCOM), designs, manufactures, and markets digital wireless telecom products and services based on Code Division Multiple Access (CDMA) technology. Products include CDMA-based integrated circuits (ICs) and system software for wireless voice and data communications as well as global positioning system (GPS) products. The company also licenses many of its 5,700+ patents and intellectual property to manufacturers of wireless equipment. Qualcomm usually receives one-time license fees and ongoing royalties from companies using CDMA technology and associated protocols. Typically income received as royalty has limited impact on cost of good sold which implies higher gross margin. Qualcomm, due to its dominant position in CDMA technology, is uniquely situated to benefit from the wireless industry's long-term growth. Most of the third generation (3G) networks will be designed using variations of Qualcomm's patented technology. As a result, revenue from patent licensing and royalty payments are expected to grow at a healthy pace and provide opportunities for the company to expand its chipset product offerings. The introduction of EV-DO has generated considerable interest as it dramatically increases wireless data speeds and is considered a significant value proposition for organizations seeking high-speed mobile access. Other providers, including Sprint and Telus, are also upgrading wireless capabilities to 3G. In addition, commercial launches of WCDMA (Wideband CDMA) are further driving revenue for the company. 3G-based wireless technology continues to be the next network upgrade of choice throughout the world. In the past several quarters, 75 new 3G networks were deployed worldwide, as represented by carrier implementations of HSPDA (High Speed Packet Data) in countries, including Sweden, Romania, the Netherlands, Australia, New Zealand, Canada, Chile, and Malaysia. In order to diversify its operation, Qulacomm launched its mobile-television services called MediaFLO. This strategic initiative, starting in 2004, has gained endorsements from leading carriers; in particular Verizon is planning to offer mobile-TV facilities to its customers in early 2007. Mobile-TV services are also likely to be provided by AT&T and Sprint-Nextel as there are limited vendor solutions in this emerging area of technology. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

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QCOM - QUALCOMM Inc - company has now topped analysts’ expectations in 10 out of the last 12 quarters

QUALCOMM Incorporated (QCOM) topped analysts’ earnings expectations in 10 out of the last 12 quarters. Earnings per share are projected to grow 17% over the next 3-5 years. In mid March, the company raised its second-quarter profit guidance (it is scheduled to release second-quarter results today). QCOM has a current dividend yield of 1.12% and a five-year average dividend yield of 0.67%. Full Analysis QUALCOMM Incorporated engages in the design, development, manufacture and marketing of digital wireless telecommunications products and services based on its Code Division Multiple Access (CDMA) technology. On Jan 24, QCOM reported first-quarter fiscal 2007 earnings per share of 39 cents, which beat the Street’s estimate by two pennies. The company has now topped analysts’ expectations in 10 out of the last 12 quarters. Revenues increased 16.1% to $2.02 billion from $1.74 billion in the prior-year period. The company cited strong demand for wireless phones that use the company's chipsets and software as fueling the quarterly results. CEO Dr. Paul E. Jacobs stated, "Our results this quarter were driven by record 3G handset and chipset shipments. The worldwide migration to CDMA-based technologies is accelerating as we continue to execute with our partners to drive innovations into the marketplace." QCOM is set to announce its second-quarter results today. In mid March, the company raised its second-quarter profit guidance to between 48 cents and 49 cents per share on revenues between $2.1 billion and $2.2 billion. The previous outlook called for earnings per share between 42 cents and 44 cents on revenues between $2 billion and $2.1 billion. Strong worldwide demand for the company’s CDMA products prompted the revised guidance. The consensus earnings estimate for this quarter currently sits at 43 cents per share—a five-cent improvement over the past 60 days. Profit forecasts for the full year have risen seven cents to $1.62 over the same period of time. Earnings per share are projected to grow 17% over the next 3-5 years, while the industry is expected to grow by 15%. Free cash flow during the first quarter was $467 million, up 21.9% over the prior-year quarter. Also, at the end of the first quarter, QCOM had more than $10.5 billion of cash, cash equivalent and marketable securities on its balance sheet and no debt outstanding. This has enabled the company to pay a quarterly cash dividend of 14 cents per common share. The dividend is payable on Jun 29 to stockholders of record as of Jun 1. QCOM has a current dividend yield of 1.12% and a five-year average dividend yield of 0.67%. The company’s return on equity, a common measure of profitability, quadruples that of the industry average—20% compared to 5%. QCOM is a Zacks #2 Rank (Buy) stock. Zacks #2 Rank stocks have generated an average annual return of 21.6% since 1988. Because the Zacks Rank has a market cap bias, Growth & Income investors may find a greater number of large-cap stocks by considering both Zacks #1 Rank (Strong Buy) and Zacks #2 Rank (Buy) stocks in their selection criteria. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home

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