San Diego-based wireless technology developer Qualcomm
What analysts say:
- Buy, sell, or waffle? Of the 27 analysts covering Qualcomm, 22 say buy, four say hold, and one says sell. Qualcomm ranks as a three-star stock (out of a possible five) in the Motley Fool CAPS community, based upon the views of 895 investors who logged an opinion.
- Revenues. The average analyst is looking for nearly 13% quarterly sales growth, to $2.26 billion.
- Earnings. Profits are expected to rise to $0.53 per share.
What management says:
Even in the face of legal spats with Broadcom
What management does:
While demand for Qualcomm products remains strong, expenses for R&D and the ongoing legal defense have stamped a sad face on the margin picture. Should the company manage to settle some major lawsuits, margins should improve appreciably.
Margins % |
3/05 |
6/06 |
9/06 |
12/06 |
3/07 |
6/07 |
---|---|---|---|---|---|---|
Gross |
71.3 |
71.3 |
71.0 |
70.5 |
70.5 |
70.3 |
Operating |
39.0 |
38.1 |
36.0 |
33.9 |
33.3 |
32.7 |
Net |
35.6 |
33.8 |
32.8 |
32.0 |
32.1 |
32.5 |
One Fool says:
Qualcomm continues its rollercoaster ride through the litigation funhouse, with investors hanging on for each new development on the legal front. Most recently, the company courted Donald J. Rosenberg from Apple
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