. 8 billion, at the high end of its previous forecast. In" /> Broadcom shares rise on 4th-qtr revenue outlook | Earnings | News

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Broadcom shares rise on 4th-qtr revenue outlook

Created on Wednesday, 14 December 2011 08:49

Category: Earnings

NEW YORK (AP) -- Shares of Broadcom Corp. got a boost Wednesday after the chip maker said it expects fourth-quarter revenue of about $1.8 billion, at the high end of its previous

forecast.

In October, Broadcom had said that it expected revenue of $1.7 billion to $1.8 billion for the three months ending in December. Analysts polled by FactSet are forecasting revenue of $1.78 billion, on average.

Broadcom's October guidance had disappointed investors. Analysts then had higher expectations, predicting revenue of $2.01 billion.

"Broadcom's (fourth quarter) is coming in stronger than expected, driven by solid shipments and tight operational management," said CEO Scott McGregor in a statement.

Broadcom makes communications chips used in cellphones, cable set-top boxes and other devices.

Shares of Irvine, Calif.-based Broadcom rose $1.21, or 4.3 percent, to $29.40 in late morning trading. The stock is still trading close to the low end of its 52-week range of $28.05 to $47.39. Shares have dropped 21 percent since Oct. 25, when Broadcom released its third-quarter results and fourth-quarter guidance.

Courtesy Yahoo Financial News

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