Cell phone chip maker Qualcomm Inc. (NASDAQ:QCOM) reported better-than-expected quarterly earnings, spurred by strong orders from Apple and Samsung. The company guided third-quarter and raised its full-year EPS forecast, both coming in slightly below consensus.
Following the announcement, shares shed 6.2 percent to $62.87 in extended trading.
Non-GAAP EPS of $1.01 on revenue of $4.94 billion, topped analysts' expectations of 96 cents and $4.84 billion.
Net earnings were $2.23 billion or $1.28 per share for the second quarter, compared with $999 million or 59 cents per share in the year-ago quarter.
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The San Diego, California-based company's revenue jumped 28 percent to $4.9 billion.
Apple (AAPL) and Samsung rely on Qualcomm's 3G and 4G chipsets for their iPhones, iPads, and Galaxy line of devices.
In the first quarter, Qualcomm earnings, excluding items, were 97 cents per share, on revenue of $4.68 billion.
Looking ahead for the third quarter, QCOM sees non-GAAP EPS between 83 cents and 89 cents, on revenue of $4.45 billion to $4.85 billion. Analysts expect EPS of 90 cents per share on revenue of $4.80 billion.
For the full year, the company now expects EPS in the range of $3.61 to $3.76 from prior expectations of $3.55 to $3.75. Revenue is still projected between $18.7 billion and $19.7 billion. Analysts expect EPS of $3.77 per share on revenue of $19.37 billion.
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The stock, which has been trading between $45.98 and $68.87 over the past year, ended Wednesday's regular trading at $67.05.