Wireless chipmaker Broadcom Corporation (
) late Tuesday posted better-than-expected first quarter earnings
results, but its second quarter revenue forecast fell short of
analysts' view, sending its shares plunging in aftermarket
The Irvine, CA-based company reported first quarter net income
of $228 million, or 40 cents per share, compared with $210 million,
or 40 cents per share, in the year-ago period.
Revenue jumped 25% from last year to $1.82 billion.
On average, Wall Street analysts expected a smaller profit of 35
cents per share on slightly lower revenue of $1.81 billion.
Looking ahead, the company said it expects second quarter
revenues to range from $1.75 billion to $1.85 billion, which would
miss the average analyst estimate for $1.9 billion.
Broadcom shares plunged $3.26, or -8.1%, in premarket trading
The Bottom Line
Shares of Broadcom (
) have a .89% dividend yield, based on last night's closing stock
price of $40.41. The stock has technical support in the $36-$38
price area. If the shares can firm up, we see overhead resistance
around the $42-$44 price levels.
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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, as well as a detailed explanation of
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