Broadcom’s Q2 Profit Falls, but Revenue Rises 10% and Adjusted Net Beats View (BRCM)

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Wireless chipmaker Broadcom Corporation ( BRCM ) late Tuesday posted a downturn in second quarter earnings, but adjusted results beat Wall Street's expectations.

The Irvine, CA-based company reported second quarter net income of $160 million, or 28 cents per share, compared with $175 million, or 31 cents per share, in the year-ago period. Excluding special items, adjusted profit was 72 cents per share.

Revenue rose almost 10% from last year to $1.971 billion.

On average, Wall Street analysts expected a smaller profit of 67 cents per share, on lower revenue of $1.95 billion.

Looking ahead, BRCM forecast third quarter revenues to range from $2 billion to $2.15 billion, while analysts are looking for $2.11 billion.

Broadcom shares rose 82 cents, or +2.7%, in premarket trading Tuesday.

The Bottom Line
Shares of Broadcom ( BRCM ) have a 1.30% dividend yield, based on today's closing stock price of $30.77. The stock has technical support in the $27-$28 price area. If the shares can firm up, we see overhead resistance around the $34 price level.

Broadcom Corporation ( BRCM ) is not recommended at this time, holding a 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 Nasdaq, Inc.

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