Broadcom Q2 Profit Beats View as Chip Demand Rises (BRCM)

By Staff,

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Wireless chip maker Broadcom Corporation ( BRCM ) late Tuesday reported better-than-expected second quarter earnings results, and also offered a third quarter revenue forecast that beat expectations.

The Irvine, CA-based company reported second quarter net income of $278 million, or 52 cents per share, compared with $13.4 million, or 3 cents per share, in the year-ago period. Excluding one-time items, adjusted profit was 66 cents per share.

Revenue jumped 54% from last year, to $1.6 billion.

On average, Wall Street analysts expected a smaller adjusted profit of 62 cents per share, on slightly lower revenue of $1.59 billion.

Looking ahead, the company forecast third quarter revenue to range from $1.7 billion to $1.8 billion, which would beat the average analyst estimate of $1.67 billion.

Broadcom shares fell 46 cents, or -1.3%, in premarket trading Wednesday.

The Bottom Line
Shares of BRCM have a .85% dividend yield, based on last night's closing stock price of $37.53. The stock has technical support in the $32-$34 price area. If the shares can firm up, we see overhead resistance around the $40-$41 price levels. We would remain on the sidelines for now.

Broadcom Corporation ( BRCM ) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Stocks
Referenced Stocks: BRCM

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