Broadcom Shares Plummet as Revenue Forecast Misses View (BRCM)

By
A A A
Share |

Wireless chipmaker Broadcom Corporation ( BRCM ) 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 trading.

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 Wednesday.

The Bottom Line
Shares of Broadcom ( BRCM ) 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 ( BRCM ) is not recommended at this time, holding a Dividend.com 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 The NASDAQ OMX Group, Inc.

Created by Dividend.com


This article appears in: Investing , Stocks

Referenced Stocks: BRCM

Dividend.com

Dividend.com

More from Dividend.com:

Related Videos

Stocks

Referenced

Most Active by Volume

74,282,785
  • $10.84 ▲ 11.64%
60,794,128
  • $17.12 ▲ 0.71%
55,628,662
  • $35.59 ▼ 1.00%
55,306,290
  • $116.47 ▲ 0.14%
55,118,241
  • $39.75 ▼ 0.43%
53,597,648
  • $9.41 ▲ 8.29%
41,889,990
  • $47.98 ▼ 1.48%
35,692,375
  • $97.34 ▼ 0.57%
As of 11/21/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com