(By Balachander) Qualcomm Inc. (NASDAQ: QCOM) reported quarterly earnings and revenue that topped market expectations amid healthy demand for smartphones and that the cell phone chip maker boosted its full-year outlook.
Shares jumped 5.58 percent in extended trading on Wednesday.
Non-GAAP earnings per share (EPS) were $1.26 on revenue of $6.02 billion, topping analysts' expectations of $1.13 and $5.90 billion for the first quarter.
Net earnings jumped 32 percent to $2.20 billion. The San Diego, California-based company's revenue climbed 29 percent for the three month period.
Qualcomm makes CDMA chips that power the leading smartphones and tablets and is benefiting from strong smartphone demand across a wide range of its customers, including Apple Inc. (NASDAQ: AAPL) and Samsung, who rely on Qualcomm's 3G and 4G chipsets for their iPhones, iPads, and Galaxy line of devices.
The company said MSM chip shipments were 182 million units, up 17 percent from the year-ago quarter.
Looking ahead for the second quarter, QCOM sees non-GAAP EPS between $1.10 and $1.18, on revenue of $5.8 billion to $6.3 billion. Analysts expect EPS of $1.10 on revenue of $5.88 billion.
For the full year, the company now expects non-GAAP EPS in the range of $4.25 to $4.45 from prior expectations of $4.12 to $4.32. Revenue is now projected between $23.4 billion and $24.4 billion from $23.0 billion to $24.0 billion projected earlier. Analysts expect EPS of $4.32 on revenue of $23.63 billion.
In the fourth quarter, Qualcomm earned $0.85 per share on a non-GAAP basis, on revenue of $4.87 billion.
The stock, which has been trading between $53.09 and $68.87 over the past year, ended Wednesday's regular trading at $63.53.