Broadcom Corp Earnings: Profits Beat Street

S&P 500 (NYSE:SPY) component Broadcom Corporation (NASDAQ:BRCM) posted lower net income in the first quarter compared with a year-earlier period. Broadcom manufactures semiconductors for wired and wireless communications.

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Broadcom Earnings Cheat Sheet for the First Quarter

Results: Net income for Broadcom Corporation fell to $88 million (15 cents per share) vs. $228 million (40 cents per share) a year earlier. This is a decline of 61.4% from the year-earlier quarter.

Revenue: Rose 0.6% to $1.83 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Broadcom Corporation reported adjusted net income of 65 cents per share. By that measure, the company beat the mean estimate of 31 cents per share. Analysts were expecting revenue of $1.8 billion.

Quoting Management: “Broadcom performed well in the first quarter, with revenue near the high end of the guided range and better-than-expected underlying profitability,” said Scott McGregor, Broadcom’s President and Chief Executive Officer. “We closed the NetLogic Microsystems transaction to expand our footprint in network infrastructure, extended our lead in 5G WiFi by beginning commercial shipments, and rounded out our PON portfolio with the acquisition of BroadLight to enable complete solutions for the fastest growing segment in broadband access.”

Key Stats:

The company has now seen net income fall in each of the last four quarters. In the fourth quarter of the last fiscal year, net income fell 4.6% while the figure fell 17.5% in the third quarter of the last fiscal year and 37.1% in the second quarter of the last fiscal year.

The company has now beaten estimates the last two quarters. In the fourth quarter of the last fiscal year, it topped expectations with net income of 45 cents versus a mean estimate of net income of 40 cents per share.

Revenue rose last quarter after dropping in the previous quarter. Revenue fell 6.5% to $1.82 billion in the fourth quarter of the last fiscal year from the year earlier.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the second quarter is 40 cents per share, up from 39 cents ninety days ago. For the fiscal year, the average estimate has moved up from $1.80 a share to $1.86 over the last ninety days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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