Qualcomm Incorporated

Qualcomm Incorporated (QCOM - Analyst Report) recently boosted its earnings guidance and analysts followed suit. Analysts are projecting earnings of $1.46 per share for the year ending September 2009, which is 12 cents above last month’s forecast.

Company Description

Qualcomm Incorporated provides digital wireless communications products and services based on CDMA and other advanced technologies. The company is headquartered in San Diego, CA.

Qualcomm Incorporated Lifts Guidance

The company recently increased its earnings guidance on strong worldwide demand. Dr. Paul E. Jacobs, chairman and CEO of Qualcomm said the increased guidance reflects stronger than expected demand for more data-capable chipsets and increased licensing revenues. Jacobs added that in light of the current economic environment, the company remains cautious and currently projects a modest sequential decrease in chipset shipments.

Analysts responded with higher forecasts of their own. Earnings forecasts for the fiscal year ending September 2009 are at $1.46 per share, versus last month’s $1.34. For the following year, analysts are projecting earnings of $2.07 per share, an increase from last month’s $1.98.

The most accurate forecasts are more bullish at $1.51 per share for the year ending September 2009 and $2.10 for the following year.

Qualcomm’s third-quarter repost is scheduled for release on July 22.

Favorable Comparisons

The company compares well to the industry. Qualcomm offers a return on equity (ROE) of 16%, soaring past the industry average of 2%. The company also boasts a strong balance with no debt. Qualcomm’s net profit margin of 15% compares well to a negative industry average profit margin.

As a Growth and Income pick, QCOM pays a dividend that translates into an industry-leading yield of 1.5%.