Merrill Cuts Qualcomm Estimates
Qualcomm (QCOM ) posted $0.20 vs. $0.23 Q4 earnings per share (pro forma) despite a 6% revenue rise. Merrill Lynch cut its estimates for the wireless technology company. Analyst William Choi told Standard & Poor's MarketScope that Qualcomm's Q4 EPS was below his forecast, primarily due to lower interest on loans. He cut his $1.20 fiscal 2002 (Sept.) EPS estimate to $1.10 to account for lower interest income and uncertainties about the near-term business environment. Choi sees average selling prices for mobile telephone handsets declining 2% in calendar 2002. He continues to believe that the rapid transition to next-generation 1xRTT technology would benefit the company's chipset and technology licensing businesses. He maintains his near-term accumulate and long-term buy ratings.