Broadcom stock up after 2Q results beat estimates

AP News
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Posted: Jul 24, 2012 4:56 PM

IRVINE, Calif. (AP) — Broadcom Corp., a maker of communications chips, said Tuesday that its second-quarter net income fell 9 percent as its expenses rose, but the results beat Wall Street's expectations and shares climbed in after-hours trading.

The company earned $160 million, or 28 cents per share, in the April-to-June quarter. That's down from $175 million, or 31 cents per share, in the same period a year earlier.

Adjusted earnings were 72 cents per share in the latest quarter, above Wall Street's expectations.

Revenue rose 10 percent to $1.97 billion from $1.74 billion.

Analysts, on average, were expecting earnings of 67 per share on revenue of $1.95 billion, according to FactSet.

Operating costs grew 12 percent to $1.82 billion from $1.63 billion. The company did not offer detail on what drove costs higher.

For the quarter ending Sept. 30, Broadcom said it expects revenue to fall between $2 billion and $2.15 billion. Wall Street, on average, was projecting $2.11 billion, with estimates ranging from $2.01 billion to $2.22 billion.

Broadcom's stock rose 87 cents, or 2.8 percent, to $31.64 in after-hours trading. The stock closed regular trading down 21 cents at $30.77.