Broadcom Reports Mixed Results; Stock Falls in Late Trade (BRCM)

Chip maker Broadcom BRCM released its fiscal second-quarter earnings results after the closing bell on Tuesday. The company's earnings per share came in ahead of estimates, but sales missed Wall Street expectations. In late trading, shares of Broadcom were last down around three percent to $30.84. Management Commentary "Broadcom delivered solid revenue and gross margins in Q2 with tightly managed sequential growth in operating expenses. This combination of financial discipline and in-line revenue enabled us to deliver non-GAAP earnings per share ahead of First Call consensus," said Scott McGregor, Broadcom's President and Chief Executive Officer. "Looking forward, we see continued growth driven by our industry leading portfolio of wired and wireless communication platforms." Q2 Financial Results The Irvine, California-based tech company reported a net loss of $251 million or $0.43 per share, compared to net income of $160 million or $0.28 per share, in last year's corresponding period. Adjusted net income for the period was $436 million or $0.70 per share, versus $435 million or $0.72 per share, in last year's fiscal second-quarter. This beat analysts' consensus EPS estimates of $0.68 by two cents. Total revenue in the period was $2.09 billion from $1.97 billion a year ago. This came in slightly below Wall Street consensus sales estimates of $2.10 billion. Q3 Guidance Broadcom guided for third-quarter revenue of $2.05 billion to $2.20 billion. Margins are expected to be up around 50 basis points versus last year's corresponding period. Currently, Wall Street analysts are modeling Q3 EPS of $0.76 on revenue of $2.25 billion.