The designer and manufacturing of wireless telecommunications productions QCOM announced solid quarterly earnings at the high end of guidance, and revenue came in at $US9.9bn, above the $9.51bn expected, delivering EPS of $2.75 compared to the $2.37 consensus. The earnings beat estimates as smartphone chip sales suggest a recovery is underway. The company announced that it shipped $6.69 billion in handset chips during the December quarter, up 16% year-on-year, a positive sign for the smartphone market after two years of declines. However, high inventory levels led to a downgrade by Citi from buy to neutral and the stock falling over 4.5%.
- We have several key uncertainties for QCOM over the coming year, making it easy to sit on the proverbial fence.
MM is neutral on QCOM
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