Broadcom Outlook for Profit Margin Disappoints

Tuesday, 01 May 2012 04:48 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Broadcom Corp. said the profit margin for the current quarter would fall from the first quarter because of acquisition-related costs, sending its shares down in after-market trade.

Broadcom, which closed its $3.7 billion acquisition of NetLogic Microsystems during the quarter, did not say how low margins would go.

The company, a maker of chips for products ranging from cellphones to network equipment, forecast revenue of $1.9 billion to $2 billion, implying a midpoint below the $1.969 billion expected by Wall Street, according to Thomson Reuters I/B/E/S.

"They did well in the quarter but their guidance is a tad weak," said Charter Equity Research analyst Ed Snyder. ""With improving overall revenue you'd expect margins to move up a bit."

The company said first-quarter revenue rose slightly to $1.827 billion from $1.816 billion. That compared with Wall Street's estimate of $1.799 billion.

Its profit fell to $88 million, or 15 cents per share, from $228 million, or 40 cents per share, in the year-ago quarter.

Broadcom shares fell about 1 percent to $36.28 after closing at $36.70 on the Nasdaq.

© 2014 Thomson/Reuters. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web

Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
Privacy: We never share your email.
 

You May Also Like
Around the Web

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved