Shares of Broadcom Take Off on Doubled Revenue and Upbeat Outlook
Shares of Broadcom Ltd. gained nearly 4% in after-hours trading on Thursday even after the chip maker posted a loss in the latest quarter. For the three-month period ending October, Broadcom posted a loss of $632 million, or $1.59 a share, compared with a year-earlier profit of $429 million, or $1.49 a share.
However, adjusted per-share earnings excluding one-time items rose to $3.47 from $2.51 recorded one year ago. The figure was better than expectations calling for a per-share profit of $3.38. Furthermore, the company’s revenue more than doubled to $4.14 billion from $1.84 billion, comfortably topping forecast of $4.13 billion revenue.
The chip maker also gave a positive outlook for the current quarter, expecting net revenue of about $4.07 billion and a gross margin of roughly 47% in the fiscal-first quarter. The interim dividend, payable on Dec. 30, was raised to $1.02 a share.
Buy Stop at 177.40, Take profit at 180.00, Stop loss at 176.00