Broadcom Shares Plummet as Revenue Forecast Misses View (BRCM)


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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 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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