This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Broadcom Tanks Despite Posting Record Revenue

IRVINE, Calif. ( TheStreet) -- Broadcom (BRCM - Get Report) beat Wall Street's revenue and earnings forecast with record fourth-quarter results Tuesday, but shares fell in extended trading.

The chip maker brought in record quarterly revenue of $1.95 billion, up from $1.34 billion in the same period last year and above Wall Street's estimate of $1.9 billion. Excluding items, Broadcom earned 75 cents a share, compared to 59 cents a share in the prior year's quarter, and just above analysts' forecast of 74 cents a share.
Broadcom reported its fourth-quarter results after market close on Tuesday.

Investors responded negatively to the results, pushing Broadcom shares down $2.42, or 5.22%, to $43.97 in extended trading.

In a separate announcement, Broadcom said it is increasing its quarterly dividend by 12.5%, to 9 cents a share. The company also announced a $300 million share repurchase plan.

"Our record results, powerful balance sheet and strong operating cash flow enable us to increase our dividend by 12.5% and accelerate share repurchases," said Scott McGregor, the Broadcom CEO, in a statement.

For the first quarter, Broadcom expects revenue between $1.75 billion and $1.85 billion. Analysts surveyed by Thomson Reuters had forecast sales of $1.8 billion.

Broadcom's results came hot on the heels of strong results from rival Qualcomm (QCOM - Get Report), which has been reaping the benefits of strong smartphone sales. Both chip makers provide yet more evidence of a robust IT spending environment.

--Written by James Rogers in New York.

>To follow the writer on Twitter, go to

>To submit a news tip, send an email to:

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BRCM $54.62 0.00%
QCOM $48.54 0.00%
AAPL $117.81 0.00%
FB $105.45 0.00%
GOOG $750.26 0.00%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs