|Broadcom reported third-quarter results after market close.|
IRVINE, Calif. ( TheStreet) -- Broadcom ( BRCM) topped Wall Street expectations for its third-quarter results Tuesday but a weak oiutlook weighed heavily on the stock in after-hours action. The chip maker brought in revenue of $1.96 billion for the September-ended quarter after market close, up from $1.8 billion in the prior year's equivalent period, and above the consensus estimate of $1.95 billion.
Excluding items, Broadcom earned 82 cents a share in the quarter, compared to 80 cents a share in the same period last year. Analysts surveyed by Thomson Reuters were looking for earnings of 77 cents a share. The Apple ( AAPL) partner, however, forecast fourth-quarter revenue between $1.7 billion and $1.8 billion, well below the analysts' estimate of $2 billion. "Broadcom delivered record revenue and cash flow in Q3 with strength across all of our end markets - Home, Hand and Infrastructure," said Scott McGregor, Broadcom's CEO, in the statement. "While our outlook reflects potential industry softness, our long-term strategy is to continue to outgrow the overall semiconductor market with product innovations that drive new market growth and value." The Irvine, Calif.-based company also expects its product gross margin to be flat to slightly down sequentially during the fourth quarter. Shares of Broadcom slumped $1.66, or 4.64%, to $34.14 in extended trading. Based on Tuesday's regular session close, the stock was down roughly 15% so far in 2011. -- 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: email@example.com