Broadcom Shares Slip on Downbeat Outlook
NEW YORK (TheStreet) -- Broadcom (BRCM) beat analysts' fourth-quarter estimates. Weak guidance weighed heavily on the company's shares in extended trading.
The key Apple (AAPL) partner generated revenue of $2.08 billion, a 14% increase on the prior year's quarter, and above analysts' estimate of $2.07 billion.
Excluding items, Broadcom earned 76 cents a share, up from 68 cents. Analysts surveyed by Thomson Reuters were looking for earnings of 73 cents.
"Broadcom delivered record revenue in each of our three business groups and record cash flow from operations in 2012, reflecting our continued market share growth and strong economics," Broadcom CEO Scott McGregor said in a statement released after the stock market closed.
The Irvine, Calif.-based firm also announced a 10% hike in its quarterly dividend, taking it to 11 cents a share. Broadcom's guidance, however, dipped below Wall Street's expectations. The chipmaker forecast revenue between $1.82 billion and $1.98 billion. Analysts surveyed by Thomson Reuters were looking for revenue of $2 billion. The downbeat outlook pushed Broadcom's shares down 1.3% to $33.27 in extended trading. Last week, Broadcom rival Texas Instruments (TXN)warned of weak demand, despite beating analysts' fourth-quarter estimates. -- Written by James Rogers in New York Follow @jamesjrogers >To submit a news tip, send an email to: tips@thestreet.com.Select the service that is right for you!
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