Broadcom Q4 Profit Meets View, but Forecast Disappoints; Dividend Boosted (BRCM)

By Staff,

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Wireless chipmaker Broadcom Corporation ( BRCM ) late Tuesday posted a fourth quarter profit that was in-line with analyst estimates, but its forecast fell short, sending its shares plummeting in aftermarket trading.

The Irvine, CA-based company reported fourth quarter net income of $266.2 million, or 47 cents per share, compared with $59.2 million, or 11 cents per share, in the year-ago period. Excluding special items, adjusted profit was 75 cents per share.

Revenue surged 45% from last year to $1.95 billion.

On average, Wall Street analysts expected a matching profit of 75 cents per share, on lower revenue of $1.89 billion.

Looking ahead, the company forecast first quarter revenue to range from $1.75 billion to $1.85 billion, which is in-line with analyst estimates for analysts are expecting $1.80 billion.

Also Tuesday, Broadcom said it raised its quarterly cash dividend by 12.5 percent to 9 cents per share. The dividend will be paid March 7 to stockholders of record as of Feb. 18.

The company announced a $300 million accelerated plan to buy back shares of its stock, too. The plan is part of its current share buyback program, Broadcom said.

The Bottom Line
Shares of Broadcom ( BRCM ) will now have a .78% dividend yield, based on the higher dividend payout and last night's closing stock price of $46.39. The stock has technical support in the $40 price area. If the shares can firm up, we see overhead resistance around the $48 price level.

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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