Supported by significant surge in demand for the high-end 3G smartphones and tablets, Qualcomm Inc. (QCOM) reported historic high earnings in the first quarter of fiscal 2011. Net income was up 39% year over year and 35% sequentially.
The company’s state-of-the-art Snapdragon platform and product diversification make management more confident about fiscal 2011, and therefore it has provided a solid financial outlook. We continue to believe the robust growth of demand for wireless data, emerging 4G LTE networks and a very strong balance sheet will serve as long-term catalysts for Qualcomm.
In addition to North America, Japan and South Korea, China and India will be the future growth drivers for the company. Qualcomm has sound foothold in these two countries. We upgrade our recommendation to Outperform.
QUALCOMM INC (QCOM): Free Stock Analysis Report
Zacks Investment Research
