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Shares of Qualcomm (NASDAQ:QCOM) rushed 2.7% higher in after-hours trading, buoyed by a strong first-quarter earnings report with increased full-year earnings guidance.

The chip designer's sales jumped 10% higher year over year to land at $6.6 billion. Non-GAAP earnings stayed flat at $1.26 per diluted share. Analysts were looking for earnings of $1.18 on about $6,7 billion in sales. Investors shrugged off the slightly soft revenue report to focus on stronger earnings than expected.

Looking ahead to the second quarter, Qualcomm's revenue guidance centered around a $6.4 billion midpoint and earnings should stop at roughly $1.20 per share. Both numbers are single-digit percentage increases over the same period in 2013, and below Wall Street's current estimates.

However, Qualcomm bumped up earnings guidance for the 2014 fiscal year while holding revenue projections steady. The increased earnings targets rest on the effects of a $3 billion share buyback program to be completed in the 2014 fiscal year.

"We expect our performance to reflect the continued strong global growth of smartphones, our chipset leadership position and our competitive strengths in 3G/4G technologies and products," said Qualcomm CEO Paul Jacobs.

Anders Bylund has no position in any stocks mentioned. The Motley Fool owns shares of Qualcomm. Try any of our Foolish newsletter services free for 30 days.

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