Broadcom Increases Guidance for Q4 (BRCM)
Wireless communications company, Broadcom Corporation( BRCM ) reported on Wednesday that they have increased guidance for their Q4.
BRCM has increased their fourth quarter guidance as a result of higher than expected revenue in their mobile sector. The company has increased their estimates to a range of $2 billion to $2.1 billion from their prior estimate range of $1.95 billion to $2.1 billion.
Although the company did not report any reasoning to why their guidance was increased, analysts believe that an upward demand for Apple, Samsung, and Galaxy products may be the cause of the higher forecast.
The company expects Q4 product margin to rise slightly from the the previous quarter. Fourth quarter guidance previously predicted the change between Q3 and Q4 to be mostly flat. BRCM is also expected to see decreased costs in the next quarter due to management controls. These reduced costs include R&D costs, selling costs, and administrative costs, which are expected to be down by $5 million to $15 million.
Broadcom shares were up 27 cents, or 0.87% during premarket trading Thursday. The stock is up 10.15% YTD.
The Bottom Line
Shares of Broadcom ( BRCM ) have a 1.24% dividend yield, based on last night's closing stock price of $32.34. The stock has technical support in the $29-$30 price area. If the shares can firm up, we see overhead resistance around the $34-$36 price levels.
Broadcom Corporation( BRCM ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.