Broadcom (BRCM) Shares Tumble as Q2 Guidance Looks Concerning
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Price: $37.55 +2.68%
EPS Growth %: 0.0%
Financial Fact:
Income from operations: 263M
Today's EPS Names:
LBIX, ESEA, ISS, More
EPS Growth %: 0.0%
Financial Fact:
Income from operations: 263M
Today's EPS Names:
LBIX, ESEA, ISS, More
Trade BRCM Now!
Shares of Broadcom (Nasdaq: BRCM) have plunged in after-hours trade Tuesday following strong first-quarter results but second-quarter sales guidance which came in below the Street estimate. The stock last traded at $36.85, down nearly 9 percent from the close.
The semiconductor manufacturer reported quarterly net income of $228 million, or 40 cents per share on a GAAP basis, up about 8.5 percent from the $210 million in net income reported during the same quarter last year.
Total revenue came in at $1.82 billion, up 24 percent from the first quarter of 2010.
Gross margin, always an important metric for any semi company, was 50.7 percent. Gross production margin came in at 48.9 percent.
Scott McGregor, Broadcom's President and CEO said, "Broadcom reported solid results for the first quarter, with revenue above the mid-point of guidance and better-than-expected profitability. In addition, momentum continues to build around our innovative solutions. Following a record year in 2010, we had record design wins in the first quarter, which speaks to the continued underlying strength of our integrated solutions for the Home, Hand and Infrastructure markets."
The company offered revenue guidance for its second quarter in the range of $1.75-$1.85 billion. Analysts are currently expecting sales of $1.89 billion during Broadcom's upcoming quarter.
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The semiconductor manufacturer reported quarterly net income of $228 million, or 40 cents per share on a GAAP basis, up about 8.5 percent from the $210 million in net income reported during the same quarter last year.
Total revenue came in at $1.82 billion, up 24 percent from the first quarter of 2010.
Gross margin, always an important metric for any semi company, was 50.7 percent. Gross production margin came in at 48.9 percent.
Scott McGregor, Broadcom's President and CEO said, "Broadcom reported solid results for the first quarter, with revenue above the mid-point of guidance and better-than-expected profitability. In addition, momentum continues to build around our innovative solutions. Following a record year in 2010, we had record design wins in the first quarter, which speaks to the continued underlying strength of our integrated solutions for the Home, Hand and Infrastructure markets."
The company offered revenue guidance for its second quarter in the range of $1.75-$1.85 billion. Analysts are currently expecting sales of $1.89 billion during Broadcom's upcoming quarter.
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