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5 Triply Tempting Blue-Chip Stocks to Buy

Earnings, dividend hikes & surges make these the belles of the ball

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qualcomm qcom stockIn March, digital communications giant Qualcomm (NASDAQ:QCOM) raised its quarterly dividend 16% to 25 cents per share. The company also announced a $4 billion share buyback program. In April, the maker of chips used in cellphones and other wireless devices posted fiscal second-quarter earnings of $1.01 per share, up from 86 cents a share the prior year. Revenue dialed in at $4.94 billion, a 28% increase from $3.87 billion a year ago. Wall Street was expecting the company to report earnings of just 96 cents a share on $4.84 billion in revenue. Although Qualcomm said it expects slightly reduced earnings in fiscal Q3, investors still are embracing the stock. QCOM shares are up 12% year-to-date.

Interestingly, the lower outlook for the coming quarter and the rest of 2012 is primarily because of a manufacturing shortage of the company’s 28-nanometer chipset. The chipset is inbuilt in MSM 8960 Snapdragon processor, which is widely used in several high-end smartphones. I suspect this shortage will be a temporary phenomenon, and one that Qualcomm will rectify no later than fiscal Q1 2013 — and that means the profit floodgates will be open once again.

As of this writing, Jim Woods did not hold a position in any of the aforementioned securities.

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