Broadcom’s Weak Outlook Sends Shares Plunging (BRCM)

By Staff,

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Wireless chipmaker Broadcom Corporation ( BRCM ) 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 Wednesday.

The Bottom Line
Shares of Broadcom ( BRCM ) 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 ( BRCM ) is not recommended at this time, holding a DARS™ Rating of 3.1 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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This article appears in: Investing Stocks
Referenced Stocks: BRCM

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