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), 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 http://twitter.com/jamesjrogers. >To submit a news tip, send an email to: firstname.lastname@example.org.
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