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