Qualcomm Moves up on Mixed Q3 Results and 2 Other Hot Stocks to Watch
Qualcomm Inc. (NASDAQ:QCOM): Current price $63.02
Shares of communications products maker are up in late-morning trading Thursday, after the firm posted mixed third quarter results, but raised its outlook for the full year. Wednesday night, Qualcomm reported third quarter adjusted earnings per share of $1.03 and revenue of $6.2 billion, against consensus of $1.03 and $6.05 billion, respectively. Also, the company raised its estimate for fiscal year 2013 to between $4.48 and $4.56 from $4.40 to $4.55, versus analyst forecasts of $4.54. The full-year revenue outlook was hiked to a range of $24 billion and $25 billion, compared to a consensus of $24.48 billion. Thursday morning, Citigroup downgraded Qualcomm to Neutral from Buy, as the firm believes that decelerating unit growth in smartphones will limit share potential. Citi also reduced its price target for shares from $81 to $70.
PulteGroup Inc. (NYSE:PHM): Current price $16.40
The homebuilder PulteGroup reported that its net income dropped by 14 percent after it booked a combined $66 million in charges for resolving a legal dispute, repurchasing debt, and its corporate relocation. The firm posted net income of $36.4 million, or 9 cents per share, in the second quarter, down from a profit of $42.4 million, or 11 cents per share, year-over-year. Without the charges, earnings would have moved up to 26 cents a share. Wall Street analysts had predicted that PulteGroup would report earnings of 29 cents per share, said the data provider FactSet.
Xerox Corp. (NYSE:XRX): Current price $9.84
On Thursday, Xerox reported higher-than-anticipated second quarter earnings on growth in its services division, and also reiterated its full-year targets, as its restructuring efforts showed signs of success. In 2012, the company launched a restructuring program centered on its services arm, which currently brings in approximately 55 percent of revenue, and manages anything from toll systems to healthcare programs. Chief Executive Ursula Burns said that the aggregate contract value of services signings was up by 40 percent, while new business signings rose by 10 percent. Burns added that the renewal rate for business processes and IT outsourcing stands at 95 percent.
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