Shares of Qualcomm Inc. outpaced the broader market Thursday, a day after the mobile device chipmaker reported a 31 percent jump in fiscal third-quarter earnings and raised its expectations for the year.
THE SPARK: The San Diego company said Wednesday that it earned $1.58 billion, or 90 cents per share, in the three months that ended June 30. That compares to earnings of $1.21 billion, or 69 cents per share, in last year's quarter. Adjusted earnings totaled $1.03 per share, excluding items like share-based compensation.
Revenue jumped 35 percent to $6.24 billion.
Analysts expected, on average, earnings of $1.03 per share on $6.05 billion in revenue, according to FactSet.
Qualcomm now expects adjusted earnings of $4.48 to $4.56 per share for the fiscal year, up from a previous forecast for $4.40 to $4.55 per share. It narrowed its revenue forecast to $24.3 billion to $25 billion from $24 billion to $25 billion.
Analysts expect earnings of $4.54 per share on $24.4 billion in revenue.
THE BACKGROUND: Qualcomm makes chips to help mobile devices connect over 3G and 4G LTE cellular networks. It also makes Snapdragon processors that turn devices into mini computers.
The company also matched analysts' expectations in the first quarter but had topped forecasts for several quarters before that. It faces tough competition from other chip makers like Intel Corp. to supply the mobile computing market.
SHARE ACTION: Up 2.9 percent, or $1.81, to $63.20 in afternoon trading, while the Nasdaq exchange rose slightly. The stock is up 2 percent so far this year.