Qualcomm Inc (QCOM)

[fmikehugo]

14:24 QCOM Qualcomm: TWP trims revenue est following co's guidance

Thomas Weisel comments that revised guidance by segment shows some pricing pressure. For SepQ: (1) Chipsets -- MSM chip units at 38-39mn units v. prior expectations of 36-38mn, (2) Royalties -- 46mn CDMA phone shipments v. prior expectations of 44mn; CDMA phone ASPs at $210 v. prior expectations of $206. Given that unit guidance is going up while overall topline guidance is moderating, it appears the issue is chip ASPs/royalty rates. In light of the new revenue range guidance, firm is revising its SepQ estimate to $1.41bn from $1.43bn. Given that the stock trades at 05E PE/PS of 32.6/10.5 v. peers at 18.5/3.2, firm believes many of the uncertainties QCOM faces are largely not priced in.