Broadcom (BRCM) Q4 EPS Misses Despite Increasing Fourfold

February 1, 2011 5:41 PM EST
Broadcom Corp. (NASDAQ: BRCM) said Tuesday that its fourth-quarter profit rose fourfold, but shares are down after the company reported that its revenue in the current quarter would fall.

The company, which has benefited from the popularity of products like the Apple Inc. (NASDAQ: AAPL) iPhone, reported that its fourth-quarter income rose to $266 million or 47 cents per share, compared to $59 million or 11 cents per share in the same quarter last year.

Excluding one-time items the company earned 58 cents per share in the period, missing the analyst estimate of 74 cents per share.

Revenue for the company rose 45 percent to $1.95 billion from $1.34 billion a year ago, compared to the Street's view of $1.9 billion.

"I am very pleased with our record performance in 2010, as Broadcom gained significant market share and delivered record revenue, earnings per share, and cash flow from operations," said Scott A. McGregor, Broadcom's President and Chief Executive Officer. "Our achievements highlight the incredible capabilities of our employees to create innovative solutions in the wired and wireless communications markets."

Looking forward, the company sees first-quarter sales of $1.75-$1.85 billion, compared to the Street's view of $1.8 billion.

Broadcom also announced a $300 million accelerated share buyback program.

Shares of Broadcom are down 6 percent to $43.56 in aftermarket trade on Tuesday.

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