Broadcom Beats the Street after Thrilling CES Demonstrations
Broadcom reported financial results for the fourth quarter of 2012 yesterday, beating the Street’s estimates on all counts.
The networking semiconductor vendor reported earnings of $462 million or 76 cents per share versus a profit of $254 million in the same period 12 months ago – an 81.89 percent year over year increase. Analysts predicted net income of 73 cents per share.
Revenue was also up at $2.08 billion, 14 percent more than what the company reported for the fourth quarter of 2011 but 2.3 percent less than what it made in the previous three months. In spite the decline, Broadcom managed to peddle ahead of Wall Street’s average estimate of $2.07 billion.
In 2012, the chipmaker made a record $8.01 billion in net revenue and reached an all time high cash flow of $1.93. The board also approved a 10 percent increase in dividends – great news for investors.
“Broadcom delivered record revenue in each of our three business groups and record cash flow from operations in 2012, reflecting our continued market share growth and strong economics.” said Scott McGregor, Broadcom’s President and Chief Executive Officer. “Based upon these results, Broadcom’s Board of Directors today announced a ten percent increase in our dividend, consistent with our commitment to enhancing shareholder value.”
Broadcom credits its gains in the fourth quarter to increased demand for wireless technology. At CES earlier this month LG revealed that several of its upcoming smart TV models will ship with Broadcom silicon that supports 5G, and a couple of other vendors made similar announcements. Just a month earlier the chipmaker made headlines when it promised to reward top paying customers with bleeding edge mobile processors that are not yet available in any mobile device.
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