USB Piper cut estimates on Qualcomm (QCOM) on concerns declining interest rates may put further pressure on the company's interest income.
Analyst Samuel May says delays in deployment and introduction of the CDMA 1xRTT technology in North America and Japan is also moving to the forefront as the company moves into Q4. Although he's reasonably comfortable with his Q4 estimates of $680.5 million in revenue and $0.25 EPS, he is less confident profitability targets are achievable in fiscal 2002 (Sept.). Although May thinks Qualcomm will be able to grow total revenues by 13.9% in fiscal 2002 to $3.1 billion, multiple catalysts prompt him to cut his $1.23 fiscal 2002 EPS estimate to $1.19. May also cut his $75 12-month target to $50. He maintains a buy rating on the shares.