Broadcom Offers Outlook, Raises Dividend And Announces Buyback Plan

Broadcom Corporation BRCM,announced updated financial guidance Tuesday for the fourth quarter of 2014 and a range of shareholder-focused initiatives at its annual Analyst Day.

The company’s press release highlighted the following points:

Total Net Revenue: Increased the guided range for revenue to approximately $2.075 — $2.150 billion. Analysts have expected $2.09 billion in revenue.

Product Gross Margin: Maintained the guided range on both a GAAP and non-GAAP basis.

R&D and SG&A Expenses: Closer to down ~$50 million and down ~$40 million on a GAAP and non-GAAP basis, respectively.

Dividend: Quarterly dividend to increase by $0.02 per share, to $0.14 per share or $0.56 on an annual basis, a 17 percent year-over-year increase, beginning with the dividend that will be declared in the first quarter of 2015.

Buyback: $1 billion share buyback authorization in 2015.

"Today's update highlights the strength in our core businesses and our commitment to delivering shareholder value," said Scott McGregor, Broadcom President and CEO. "A 17 percent year-over-year increase in our quarterly dividend demonstrates the confidence in our business strategy and the importance we are placing on capital return."

Broadcom Corporation traded at $43.40 in the aftermarket, up 1.76 percent.