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Broadcom Beats Q2 Profit Views, Trades Up After Hours

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Broadcom (NASDAQ: BRCM) gained more than three percent in after-hours action when it topped Wall Street estimates for second quarter profits.

Adjusted earnings fell nearly seven percent to $406 million, or $0.65 a share, from a year earlier $436 million, or $0.70 a share.

Revenue declined 2.3 percent to $2.04 billion, from $2.09 billion last year.

Analysts expected adjusted earnings of 0.61 cents a share on revenue of $2.05 billion.

Net loss for the recent period totaled $1 million, or break even per share, including charges of $0.32 a share for exiting the company's cellular business, plus other items of $0.08 a share

Exiting the cellular business will result in "noticeable" improvement to profits, gross margin and cash flow, according to Chief Executive Scott McGregor.

Those improvements will "provide an opportunity to return more capital to our shareholders," McGregor said.

A call with analysts starting at 4:45 p.m. eastern time was to offer the company's outlook.

Broadcom traded recently after hours up 3.23 percent at $40.

Posted-In: Scott McGregorEarnings News Guidance After-Hours Center

 

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