Broadcom Shares Tumble Despite Better-than-expected Earnings and Rosy Q4 Guidance
Shares of Broadcom Ltd. tumbled in extended trading session on Thursday despite the company’s better-than-expected earnings reports for the third quarter.
Broadcom’s shares lost more than 2.5 percent to trade at $248.60 per share in late trading. The Irvine, CA-based wireless chipmaker posted Q3 earnings per share (EPS) of $4.10, topping Wall Street consensus estimate of $4.03.
Net income in the three-month period to July was reported to reach $507 million, or $1.14 a share, on sales of $4.46 billion, up 7% from $4.19 billion in the year-ago quarter. Analysts on average expected the company to report sales of $4.45 billion.
The technology company posted upbeat guidance for the fourth quarter with revenue seen to hit a range from $4.725 billion to $4.875 billion, slightly above consensus for $4.79 billion.
Sell Stop at 248.60, Take profit at 245.00, Stop loss at 250.00