31.01.2014 01:01:23

Broadcom Q4 Profit Down, But Tops View - Update

(RTTNews) - Chip maker Broadcom Corp. (BRCM), Thursday reported a drop in profit for the fourth quarter, driven by lower revenues and higher expenses. Nonetheless, both earnings and revenues for the quarter trumped Wall Street expectations.

Broadcom's revenues for the fourth quarter dropped 0.8 percent to $2.06 billion from $2.08 billion in the prior year. Thirty-eight analysts polled by Thomson Reuters expected revenues of $2.02 billion for the quarter.

Irvine, California-based Broadcom's fourth-quarter profit declined to $168 million or $0.29 per share from $251 million or $0.43 per share last year.

Excluding one-time items, adjusted earnings dropped to $0.60 per share from $0.76 per share a year ago. On average, thirty-seven analysts had a consensus earnings estimate of $0.57 per share for the quarter. Analysts' estimates typically exclude special items.

Broadcom's bottom line was also impacted by higher operating costs that increased to $1.88 billion from $1.81 billion last year.

Looking ahead to the first quarter, the company expects revenues in the range of $1.9 billion to $2.0 billion. Analysts currently anticipate revenues of $1.97 billion for the quarter.

Chief Executive Scott McGregor said, "In 2013 Broadcom delivered record revenue in all three business groups. Continued strength in our Infrastructure Business Group drove Q4 revenue and earnings ahead of expectations. Looking into 2014, we are building momentum in LTE, setting the stage for Ultra HD and powering next generation service provider and data center networks."

The company also boosted its quarterly dividend by 9 percent to $0.12 per share, to be paid on March 3 to shareholders as of February 14.

BRCM closed Thursday's trading at $29.21, up $0.52 or 1.81%, on the Nasdaq. The stock further gained $0.44 or 1.51% in after-hours trade.

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