Broadcom Beats Q1 Views, Shares Surge

Shares of

jumped more than 5.5 percent in after-hours trading after the company reported stronger-than-expected results for the first quarter. The Irvine, California-based company reported a quarterly profit of $209 million, or $0.34 per share, versus a year-ago profit of $165 million, or $0.28 per share. Excluding items, the company's earnings climbed to $0.64 per share from $0.33 per share. Its revenue gained 3.7 percent to $2.06 billion. However, analysts were estimating earnings of $0.60 per share on revenue of $2.01 billion. Broadcom's research and development expenses shrank 15 percent in the quarter. The average estimate among 28 Estimize users was for earnings of $0.71 per share and revenue of $2.01 billion. "Broadcom delivered better-than-expected results in the March quarter driven by strength in the high-end smartphone and broadband access markets," said Scott McGregor, Broadcom's President and Chief Executive Officer. "Looking to the June quarter, we see operating performance continuing to strengthen on tight operating expense discipline and strong margins, consistent with our objective of driving profitable growth." For the current quarter, Broadcom projects revenue of $2.10 billion +/- $75 million, versus analysts' estimates of $2.07 billion. Broadcom shares gained 5.62 percent to $46.45 in the after-hours trading session.