Broadcom Beats Targets

The stock rises in late action.
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Broadcom

(BRCM)

beat expectations with strong first-quarter numbers.

The Irvine, Calif., communications chipmaker posted adjusted net income of $222 million, or 36 cents a share, on sales of $900.6 million for the quarter ended last month. That compares with a pro forma profit of $197 million, or 34 cents a share, on $820 million in sales during the prior quarter. Broadcom posted an adjusted profit of $81.6 million, or 15 cents a share, on revenue of $550 million in the year-ago period.

Analysts were looking for a pro forma profit of 34 cents a share on $870 million in revenue, according to Reuters Research.

Counting all one-time items, like $93.7 million in stock compensation expenses, Broadcom's GAAP profit was $135 million, or 22 cents a share.

"Numerous positive product cycles in our end markets enabled Broadcom to attain record revenue in the first quarter," CEO Scott McGregor said in a press release Thursday.

Broadcom shares, which ended regular trading down 17 cents to $45.77, gained 48 cents to $46.25 in after-hours action.