NEW YORK (TheStreet) -- Broadcom (BRCM) shares are up 2% to $43.51 in early market trading on heavy volume Wednesday after the telecom semiconductor solutions provider raised its fourth quarter guidance and increased its quarterly dividend today.
The company now expects to generate between $2.075 billion and $2.150 billion in revenue during the quarter, up from its previous forecast between $2 billion and $2.15 billion.
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The company also raised its quarterly dividend 17% to 14 cents per share,or 56 cents per share on an annualized basis. The company's board also approved a $1 billion share buyback program in 2015.
"Today's update highlights the strength in our core businesses and our commitment to delivering shareholder value. A 17% year-over-year increase in our quarterly dividend demonstrates the confidence in our business strategy and the importance we are placing on capital return," said the company.
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."