Broadcom Tops Estimates, Slides on Outlook

94073253Broadcom Corp. (NASDAQ: BRCM) reported fourth quarter and full year 2012 results after markets closed today. For the quarter, the semiconductor maker posted adjusted diluted earnings per share (EPS) of $0.76 on revenues of $2.08 billion. In the same period a year ago, the company reported EPS of $0.68 on revenues of $1.82 billion. Fourth-quarter results compare to the Thomson Reuters consensus estimates for EPS of $0.73 EPS and $2.07 billion in revenues.

For the full year, Broadcom posted adjusted diluted EPS of $2.92 on revenues of $8.01 billion, compared with 2011 EPS of $2.89. The consensus estimate called for for EPS of $2.90 on revenues of $7.98 billion.

On a GAAP basis, Broadcom reported quarterly diluted EPS of $0.43 and full-year EPS of $1.25.

The company also raised its dividend by 10%, from $0.10 a share to $0.11 share.

The company's CEO said:

Broadcom delivered record revenue in each of our three business groups and record cash flow from operations in 2012, reflecting our continued market share growth and strong economics.

For the first quarter of the 2013 fiscal year, Broadcom expects revenue of $1.9 billion, plus or minus 4%, gross margins from flat to down 0.5% compared with the fourth quarter of 2012. The consensus estimate calls for first quarter EPS of $0.63 on revenues of $2 billion. For the full year, the consensus estimate calls for EPS of $2.97 on revenues of $8.73 billion.

Broadcom's forecast for next quarter will cancel the top and bottom line beats the company posted for both the fourth quarter and the full year. That outlook does not promise much in the way of profits for shareholders next quarter.

Broadcom shares are trading down about 1.4% at $33.24 in after-hours trading today, in a 52-week range of $28.60 to $39.66. Thomson Reuters had a consensus analyst price target of around $41.00 before today's report.


Filed under: 24/7 Wall St. Wire, Earnings, Semiconductor, Semiconductors, Technology, Technology Companies Tagged: BRCM

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