Wireless chip maker Qualcomm Inc.
The company, citing stronger than expected sales from its chipset and licensing businesses, forecast quarterly earnings to run between 56 cents and 58 cents a share, excluding items.
That was much higher than its January estimate of 49 cents to 53 cents a share, an outlook that had disappointed investors who had been hoping for a stronger recovery in the mobile chip market.
We now project earnings per share to be well above the high end of our prior guidance driven by strength in licensing revenues and favorable volume and product mix in our chipset business, Chief Executive Paul Jacobs said in a statement.
The new outlook also surpassed current estimates of analysts polled by Thomson Reuters I/B/E/S, which call for the company to earn 53 cents a share.
The company also forecast net income would likely be between 42 cents and 44 cents per share, compared to its previous forecast of 35 cents to 39 cents.
Second quarter revenue, it said, should range between $2.55 billion and $2.65 billion. It had previously forecast a range of $2.40 billion to $2.60 billion, and analysts on average expected around $2.58 billion.
The company's shares rose $3.50 to $43.69 in early Nasdaq trading.
(Reporting by Paul Thomasch and Ritsuko Ando; Editing by Derek Caney)