NEW YORK ( TheStreet) -- Shares of Avago Technologies (AVGO - Get Report) leapt in late trades on Tuesday after the Singapore-based chip maker topped Wall Street expectations for its fiscal third-quarter results and forecast sequential growth in revenue in the current period.
The stock was last quoted at $31.34, up 7.1%, on volume of nearly 460,000, according to Nasdaq.com. Based on a regular session close at $29.26, the shares were up more than 35% in the past year but they had fallen nearly 26% since hitting a 52-week high of $39.45 on July 7.
The company reported a non-GAAP profit of $176 million, or 68 cents a share, for the three months ended July 31 on revenue of $603 million, up from year-ago equivalent earnings of $152 million, or 61 cents a share, on revenue of $551 million.
The average estimate of analysts polled by Thomson Reuters was for earnings of 63 cents a share in the July-ended period on revenue of $593 million."During the third quarter of fiscal 2011, our four target markets performed as we expected and we outperformed these markets as our revenue growth for the quarter came in at the high end of guidance," said Hock Tan, the company's president and CEO, in a statement. "While uncertainties prevail in the global economy today, we continue to believe revenue will grow for the balance of the fiscal year due to share gains with certain wireless and wired OEMs." For its fiscal fourth quarter ending in September, Avago forecast sequential growth in revenue of 2-to-5% with non-GAAP gross margins seen at 51.5% vs. 51.7% in the third quarter.