Thursday, January 26, 2006

Qualcomm's net income for quarter jumps 21%

San Diego Union-Tribune reports that "Qualcomm continued its streak of strong profits, yesterday posting a 21 percent increase in net income for its first quarter – but the company warned of slower growth in coming months."

According to the article, "the strong quarter was a result of growth in developing countries like India and increased adoption of next-generation wireless networks in established markets such as the United States, South Korea and Europe."

Cody Acree at Stifel, Nicolaus & Co. said, "The earnings were fine, but the revenue was a little light – light in guidance for the second quarter and light for the coming year."

Albert Lin at American Technology Research added, "People are having a hard time squaring the current quarter, which was pretty good, with their guidance."

Edward Snyder at Charter Equity Partners opined, "The company is doing very well. It's one of the strongest performers in the sector. But the stock has outrun itself."

Noting Qualcomm's traditional conservative guidance, Michael Cohen at Pacific American Securities said, "While the numbers seem conservative, I wouldn't rule out Qualcomm raising them later in the year,. As a matter of fact, I almost expect it."