Qualcomm Incorporated delivered solid third quarter financial results on Wednesday, exceeding analyst estimates but apparently not living up to shareholder expectations, with the firm’s stock taking a small hit after hours.
The San Diego based chipmaker actually saw a stellar quarter with revenues of $3.62 billion, up 34% year-over-year, with earnings per share jumping 28% to $0.73.
The chipmaker attributed its continued strength to the ongoing expansion of the smartphone market, saying it shipped a record 120 million chipsets in Q311, an increase of 17%.
CDMA devices also played their part in Qualcomm’s success this quarter, contributing to “healthy growth” in the firm’s licensing fees, as shipments reached between 170 million and 174 million devices at an average selling price (ASP) of $209 to $215, up about $9 over last quarter. Qualcomm said it expected to see this growth continue, predicting CDMA device shipments would grow some 15-22% in 2011.
“We are seeing handsets’ strength and ASP strength across both emerging and developed markets as well as increasing breadth of broader connected devices such as tablets and e-readers,” said Chief Financial Officer Bill Keitel.
The acquisition of Wi-Fi firm Atheros has also opened the door to future revenue opportunities in the wireless networking chip space, said the firm.
“Our business performed well across all key guidance metrics,” said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm before raising revenue and Non-GAAP earnings guidance for the full year to $15 billion in revenue and earnings of $3.15 to $3.20.
Qualcomm is also predicting increased shipments of 120-125 million chipset units in the fourth quarter of 2011
Impressive though the resuls were, however, they were obviously not quite enough to impress the cynics on the street, with shares dipping slightly after hours. Perhaps, analysts quipped, Apple had raised the bar a bit too high.