Broadcom Q1 Results Top Estimates, To Cut 1,900 Jobs; Stock Up

(RTTNews) - Chipmaker Broadcom Ltd (AVGO), the company created following the merger of Avago Technologies and Broadcom corp., reported a profit for the first-quarter that increased from last year. It expects to eliminate approximately 1,900 positions from its workforce across all business and functional areas on a global basis.

AVGO closed Thursday's trading at $137.33, up $0.36 or 0.26%. In the after-hours, the stock further gained $9.87 or 7.19%.

Both adjusted earnings per share from continuing operations and revenue for the quarter beat analysts' expectations.

The company expects to take charges of approximately $650 million relating to job cuts through fiscal year 2018.

Looking ahead for the second-quarter, the company expects net revenue to be $3.533 billion plus or minus $75 million, and non-GAAP net revenue of $3.550 billion plus or minus $75 million. Wall Street expect revenues of $3.57 billion for the second-quarter.

Net income, which includes the impact of discontinued operations, for the first-quarter rose to $377 million, or $1.30 per share from $351 million, or $1.26 per share in the same quarter last year.

Non-GAAP, net income from continuing operations was $710 million, or $2.41 per share, compared with net income of $596 million, or $2.09 per share in the previous year. Analysts polled by Thomson Reuters expected the company to report earnings of $2.30 per share for the quarter. Analysts' estimates typically exclude special items.

Net revenue was $1.771 billion, an increase of 8 percent from $1.635 billion in the same quarter last year. Non-GAAP Net revenue from continuing operations was $1.782 billion, an increase of 8 percent from $1.657 billion in the prior year. Wall Street expected revenues of $1.75 billion for the quarter.