Broadcom Q4 Profit Slips, but Still Beats View; Dividend Raised (BRCM)

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Wireless chipmaker Broadcom Corporation ( BRCM ) late Tuesday posted better-than-expected fourth quarter earnings and raised its quarterly dividend payout by 11%.

The Irvine, CA-based company reported fourth quarter net income of $254 million, or 45 cents per share, compared with $266 million, or 47 cents per share, in the year-ago period. Excluding one-time items, adjusted profit was 68 cents per share.

Revenue fell 6% from last year to $1.82 billion.


On average, Wall Street analysts expected a smaller profit of 64 cents per share, on slighly lower revenue of $1.81 billion.

In a separate announcement, BRCM said its board authorized an 11% raise in its quarterly dividend payout. The new dividend of 10 cents per share (up from 9 cents) will be paid on March 5 to shareholders of record as of Feb. 17.

Broadcom shares rose $1.25, or +3.6%, in premarket trading Wednesday.

The Bottom Line
Shares of Broadcom ( BRCM ) will now have a 1.16% dividend yield, based on the higher dividend payout and last night's closing stock price of $34.35. The stock has technical support in the $30-$31 price area. If the shares can firm up, we see overhead resistance around the $36-$38 price levels.

Broadcom Corporation ( BRCM ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 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 The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: BRCM

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