NEW YORK (AP) — Qualcomm Inc.'s third-quarter results will likely meet Wall Street's expectations on Tuesday when the mobile phone chip company reports its earnings, said Sterne Agee analyst Vijay Rakesh.
Rakesh, who has a "Buy" rating on Qualcomm, said that barring a few exceptions, many of the suppliers to Apple Inc.'s iPhone — such as Skyworks Solutions Inc. and Cirrus Logic Inc. — are down 10 percent to 15 percent after giving fourth-quarter guidance that either met or was better than Wall Street's expectations.
By extension, he added, Qualcomm's in-line to better-than-expected results also point to a stock price volatility, at least in the short term. That said, Qualcomm for now is still the sole 4G-optimized chip supplier as the iPhone 5 launches in China later this year.
Analysts polled by FactSet expect Qualcomm to post earnings of 82 cents per share and revenue of $4.67 billion for the third quarter.
Shares climbed 80 cents to $60.10 in premarket trading Monday.
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