Qualcomm profit up, but shares drop on outlook

Reuters.com reports that Qualcomm (QCOM) "reported a 15 percent rise in third-quarter net profit, but shares fell more than 7 percent after it forecast fourth-quarter revenue lower than some analysts' estimates. Qualcomm said its revenue for the fourth quarter would range between $1.88 billion to $1.98 billion. Analysts on average had expected fourth-quarter revenue of $1.99 billion."

According to the article, "Qualcomm said net income for its fiscal third quarter ending June 25 rose 15 percent from a year ago to $643 million, amounting to 37 cents a share, while revenue rose 44 percent to $1.95 billion."

Edward Snyder at Charter Equity Research said, "They met their quarter performance fine, it was preannounced. It was the guidance for the fourth quarter that was a negative. Revenue is not going to be so strong, and EPS will be low."