NEW YORK (TheStreet) --Shares of Broadcom (BRCM) were gaining 1.2% to $43.15 after-hours Tuesday after the chipmaker raised its quarterly dividend, increased its fourth quarter guidance, and announced a new $1 billion buyback authorization.
Broadcom announced that it increased its quarterly dividend by 17% to 14 cents a share, or 56 cents a share on an annual basis. The new dividend will begin when the company declares its dividend for the first quarter of 2015.
The chipmaker now expects revenue of $2.075 billion to $2.15 billion for the fourth quarter, above its previous estimates of $2 billion to $2.15 billion. Analysts expect revenue of $2.09 billion for the fourth quarter.
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TheStreet Ratings team rates BROADCOM CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate BROADCOM CORP (BRCM) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."