Wireless chip maker Broadcom Corporation (
) 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
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
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 (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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