Why Broadcom (BRCM) Is Up Today

NEW YORK (TheStreet) -- Broadcom (BRCM) gained 2.6% to $29.98 Friday following an earnings report that surpassed estimates.

The chipmaker reported revenue of $2.06 billion for the fourth quarter, which is down 0.8% from the year-ago quarter. Analysts surveyed by Thomson Reuters estimated revenue of $2.02 billion for the quarter. Broadcom reported earnings of 60 cents a share, beating the analyst estimate of 57 cents a share.

Revenue from the mobile and wireless segment fell 7% for Broadcom in the fourth quarter, which was expected. The company expects similar revenue drops in the segment in the first quarter due to its customers reducing inventory of mobile chips.

Broadcom expects revenue between $1.9 billion and $2 billion in the first quarter, while analysts estimate revenue of$ 1.967 billion for the quarter.

TheStreet Ratings team rates BROADCOM CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate BROADCOM CORP (BRCM) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and a generally disappointing performance in the stock itself."

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