Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



What Can Qualcomm's Earnings Report Tell You About the Mobile Holiday Season?

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Shares of semiconductor giant QUALCOMM (NASDAQ: QCOM  ) soared on Thursday thanks to a strong earnings report. Or rather, a decent report packed with signs of greater things to come.

Share prices jumped as much as 4.9%, which is no small feat for a colossus with a market cap north of $100 billion. Moreover, Qualcomm didn't do it by crushing analyst targets in the third quarter. Adjusted earnings of $1.03 per share were right in line with Street targets, even though the $6.2 billion revenue line was a positive surprise.

No, the boost rides on future expectations. Qualcomm raised and tightened its full-year earnings and revenue targets based on healthy order trends for mobile chips. Meeting the new targets means delivering a strong fourth quarter, which includes something like 28% higher expected sales year over year driving a 19% earnings boost.

Management expects to get to these ambitious targets thanks to several so-called flagship Android devices that are about to ship with high-end Qualcomm processors inside. The core processor strength is also bolstered by Qualcomm's powerful position in the market for high-speed wireless radio technologies. When it comes to next-generation protocols like 802.11ac Wi-Fi and LTE Advanced radio tower networks, even Apple (NASDAQ: AAPL  ) leans on Qualcomm's products. That's a particularly important win, because Apple holds a strong market share in exactly the kinds of highly developed and high-speed markets where Qualcomm does its best work.

Qualcomm's report underscores the rosy view of Apple CEO Tim Cook, who looks forward to product launches this fall, and dismisses the idea that high-end smartphone sales may have peaked. If nothing else, handset makers are fueling this view by placing large chip orders with Qualcomm and other component builders.

Now it's up to consumers to follow through and buy all these mobile gadgets this holiday season, and that's never a sure thing. That being said, investors with an interest in Qualcomm, Apple, or any other mobile powerhouse can heave a collective sigh of relief, as the signs of a decent holiday season are starting to pile up.

It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

Read/Post Comments (1) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 25, 2013, at 10:45 PM, prginww wrote:

    Another pumping article for QCOM. How much did it really gain after its carefully pumped up conference call and constant media statements? Big deal.

    Give it a few days, and you'll have the same share-price dropping stock I've had for months What happened during those months? There were introductions of chips and other positive news, and often on many of those days when chips and tech were up and the DOW was up 300 points, QCOM was DOWN. Do you really expect a stock like this to be a good investment? I'll go with those sources like and INO who see this as a stock NOT to buy..

    I'm waiting for Intel to apply their formidable expertise, technological superiority, and dead-set determination of this new CEO to expand to so many areas: major server expansion, the money-machine foundry they bought, new associations and acquisitions --- all of which are to change them dramatically from a high percentage PC business to a tech/chip/server giant that is capable of being at the top of the heap. There is too much negativity and impatience for immediate results.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2559768, ~/Articles/ArticleHandler.aspx, 9/28/2016 8:31:07 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,339.24 110.94 0.61%
S&P 500 2,171.37 11.44 0.53%
NASD 5,318.55 12.84 0.24%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/28/2016 4:00 PM
AAPL $113.95 Up +0.86 +0.76%
Apple CAPS Rating: ****
QCOM $63.45 Up +0.14 +0.22%
Qualcomm CAPS Rating: ****