Qualcom Up 5% After Hours On FQ3 Beat; Buy-Back Plan

Qualcomm Inc.

shares gained nearly 5 percent after-hours Wednesday after fiscal third-quarter results beat expectations and the company said it will buy back $1 billion in shares in the current period. http://investor.qualcomm.com/results.cfm The communications products company also offered a fourth-quarter forecast below expectations, but raised its full-year outlook based on the buyback plan unveiled Wednesday. Adjusted profits rose 35 percent from a year earlier to $2.47 billion or $1.44 a share, on revenue growth of 9 percent to $6.81 billion. Wall Street expected earnings of $1.22 a share on revenue of $6.52 billion. Qualcom expects fiscal fourth-quarter adjusted earnings of $1.20 to $1.35 a share, on revenue of $6.5 billion to $7.4 billion. Analysts expect $1.39 a share on revenue of $7.15 billion. A continuing investigation of Qualcom's business practices in China by a government agency there will hurt results, the company said. Also it said certain license holders in China aren't reporting their sales to Qualcom. For fiscal 2014 it raised its outlook for adjusted earnings to $5.21 to $5.36 a share, from $5.05 to $5.25 a share, including effects of the buyback. Wall Street expects $5.17. In the recent quarter, MSM chip shipments rose 31 percent to 225 million units; total device sales grew 3 percent to $58.1 billion and 3G/4G device shipment totaled 250 million to 254 million units. In after-hours trading, Qualcom was up 4.77 percent to $77.71.