NEW YORK (AP) -- Shares of Qualcomm Inc. climbed Thursday after the mobile technology company reported better-than-expected results for its fiscal fourth quarter and gave an upbeat outlook thanks to strong demand for its modems and processors.
THE SPARK: Qualcomm posted a 20 percent jump in its net income for the July-September period. Its adjusted earnings were 89 cents per share, above the 82 cents that analysts polled by FactSet had expected. Revenue for the jumped 18 percent to $4.87 billion from a year earlier. Wall Street expected $4.67 billion.
For the current quarter, the company expects adjusted earnings of $1.08 to $1.16 per share, well above analysts' expectations of $1 per share. Qualcomm's outlook for the current fiscal year was also better than what Wall Street had been expecting.
BIG PICTURE: Qualcomm is seeing growing demand for its wireless chips as consumers flock to buy smartphones and tablet computers.
ANALYST TAKE: Cowen and Co. analyst Matthew Hoffman said Qualcomm's outlook shows that the company is gaining market share among its customers.
"With concerns about competition from Mediatek and other low-end Asian vendors now less likely to weigh on (investor) sentiment, the stock should show relief given the better-than-feared outlook," he wrote in a note to investors.
SHARE ACTION: San Diego-based Qualcomm's stock rose $3.31, or 5.7 percent, to $61.43 in afternoon trading. The stock has traded in the 52-week range of $51.60 and $68.87.