Wireless chipmaker Broadcom Corporation (
) late Tuesday posted better-than-expected third quarter earnings
results, but its weak fourth quarter sales forecast sent its shares
lower in aftermarket trading.
The Irvine, CA-based company reported third quarter net income
of $270 million, or 48 cents per share, compared with $328 million,
or 60 cents per share, in the year-ago period. Excluding several
one-time items, adjusted profit was 82 cents per share.
Revenue rose 8% from last year to $1.96 billion.
On average, Wall Street analysts expected a smaller profit of 77
cents per share on slightly lower revenue of $1.95 billion.
Looking ahead, the company said it expects fourth quarter
revenue to range from $1.70 billion to $1.80 billion, which would
badly miss analysts' forecast of $2.01 billion.
Broadcom shares fell $1.35, or -3.8%, in premarket trading
The Bottom Line
Shares of Broadcom (
) have a 1.01% dividend yield, based on last night's closing stock
price of $35.82. The stock has technical support in the $31-$32
price area. If the shares can firm up, we see overhead resistance
around the $380$40 price levels.
Broadcom Corporation (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.1 out of 5 stars.
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, as well as a detailed explanation of
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