Qualcomm Inc (QCOM)

[khemara_qc]

Qualcomm Could Grow EPS Ahead Of Global Peers
Maya Roney, 09.22.05, 10:23 AM ET

http://www.forbes.com/markets/2005/09/22/qualcomm-wireless-telecommunications-0922markets04.html?par....

Credit Suisse First Boston raised earnings estimates for Qualcomm (nasdaq: QCOM - news - people ) and reiterated an "outperform" rating and $50 price target on the company.

"We expect WCDMA (wideband code division multiple access) adoption to accelerate in 2006 and continue to expect Qualcomm to achieve revenue and earnings-per-share growth substantially in excess of the global handset market," said the firm.

Qualcomm increased its fourth-quarter and fiscal 2005 guidance Wednesday due primarily to better-than-expected third-quarter CDMA and WCDMA handset shipments.

Following the announcement, CSFB raised Qualcomm's fiscal 2005 estimate to earnings of $1.17 per share on revenue of $5.7 billion, up from earnings of $1.14 per share on revenue of $5.6 billion. The research firm raised the fiscal 2006 estimate to earnings of $1.47 per share on revenue of $6.9 billion, up from earnings of $1.45 per share on revenue of $6.8 billion.

"At 29 times calendar 2006 EPS estimates, we believe [share] valuation is compelling, particularly relative to its historical trading range," said the firm. "We therefore view this as an attractive entry point and would expect to see more evidence of a late 2005 3G ramp in Europe over the next few months, given improved handset offerings planned for the holiday season and Vodafone's (nyse: VOD - news - people ) recent optimism towards broader adoption in the near term."