Broadcom Corporation (NASDAQ:BRCM), a manufacturer of chips that help mobile devices connect to the Internet, predicted Q2 sales that may surpass some analysts’ forecasts, lifted by growing orders from smartphone makers.
Revenue in Q2 will be $1.9 billion to $2 billion, the Irvine, California-based company announced recently in a statement. Analysts on average projected sales of $1.92 billion, in accordance with data compiled by Bloomberg.
Broadcom is getting advantage from demand for radio chips that let smartphones and tablets connect over Wi-Fi and Bluetooth signals. Customer Apple Inc. stated previous week it sold 35.1 million iPhones in the period, above analysts expected. Broadcom’s sales this quarter will be assisted by demand for Apple’s iPad and cheaper phones made by other clients for example Nokia Oyj, stated Ruben Roy, an analyst at Mizuho Securities USA Inc.
New York-based Roy, who suggests buying Broadcom shares, stated that the iPad assumptions are a little better than people were considering.
Broadcom added less than 1% to $36.71 at the close in New York. The shares have increased 25% this year. The stock dropped 1.4% in after-hour trading after the report. The firm’s sales estimate lagged behind some analysts’ uppermost estimates, in accordance with Doug Freedman, an analyst at RBC Capital Markets.
Q1 net income dropped to $88 million, or 15 cents per share, as compared to $228 million, or 40 cents, a year previously the company stated. Sales increased less than 1% to $1.83 billion. Not including certain costs, profit came in at 65 cents.
Broadcom was projected by analysts to have Q1 profit before certain costs of 55 cents per share on revenue of $1.78 billion.
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