Qualcomm forecast falls short of expectations

Qualcomm, the world's largest maker of chips that run cell phones, issued fourth-quarter and full-year earnings guidance that fell short of Wall Street targets, an Associated Press report said.

But the stock soared on a broad-ranging legal settlement, the report added.

Qualcomm shares rose €5.6 (US$8.80), or nearly 20%, to €34.2 (US$53.62) in morning trading.

Qualcomm and Nokia announced they have ended a long-running licensing dispute and agreed to drop all legal complaints against each other in the US, Europe and Asia.

Qualcomm said it was still 'working through the mechanics' of the settlement, the Associated Press report said.

For the full fiscal year, Qualcomm now estimates earnings at €1.34 (US$2.11) to €1.35 (US$2.13) per share. The lower end is an increase from its June guidance in the range of €(US$2.09) to €1.35 (US$2.13), though analysts were estimating €1.37 (US$2.15) per share.

Qualcomm estimates fourth-quarter revenues at €1.59 billion (US$2.5 billion) to €1.73 billion (US$2.7 billion). Analysts were expecting just over €1.73 billion (US$2.7 billion).

Qualcomm said it expects a 30% year-over-year growth in shipments of CDMA-based devices this calendar year, while global demand for 3G wireless products enjoys rapid increases.