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Market Likes Phone Chips, But Not Burgers

An optimistic earnings forecast from San Diego-based Qualcomm Inc. sent that company’s stock slightly higher Sept. 21.

Meanwhile, a pessimistic earnings forecast for another San Diego company, Jack in the Box Inc., on the same day made that company’s stock decline by 17 percent.

Qualcomm, which offers products and services related to wireless telecommunications, increased its fourth-quarter revenue forecast to the range of $1.48 billion to $1.58 billion. Previously, the company forecast revenue in the range of $1.43 billion to $1.53 billion.

Qualcomm’s stock, traded as QCOM on the Nasdaq, closed at $43.73 on Sept. 21, up seven-tenths of a percent from the previous day’s closing price of $43.42.

Qualcomm’s fourth quarter and its fiscal year end Sept. 25.

Jack in the Box reduced its fourth-quarter same-store sales forecast, predicting 1.5 percent growth over the year-ago quarter. Previously, the company predicted 3 percent growth.

The hamburger chain blamed lower-than-expected sales of a new premium sandwich, the Ultimate Club; it also said high gasoline prices may be affecting customer spending habits.

Jack in the Box stock, traded on the New York Stock Exchange as JBX, closed at $27.70 on Sept. 21, down 17.3 percent from its Sept. 20 closing price of $33.52.

Jack in the Box also said it would take an after-tax charge of 5 cents per share to cancel its test of the JBX Grill concept. The JBX Grill was “a great catalyst for developing innovative products,” said Linda Lang, the company’s president and chief operating officer.

Brad Graves

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