Networking and semiconductor giant Broadcom Ltd. (NASDAQ:AVGO) late Thursday posted better-than-expected fourth-quarter earnings results and offered an upbeat revenue outlook for the first quarter.
The San Jose based company reported adjusted Q4 EPS of $3.47, which was $0.09 better than the $3.38 that analysts had expected. Revenues surged 123.7% from last year to $4.15 billion, also beating out Wall Street’s $4.12 billion view.
Q4 gross margin from continuing operations totaled 60.8% in the latest quarter, which was in-line with Broadcom’s 59.5% to 61.5% guidance range, but down from the 62.0% margins realized in the year-ago period.
Looking ahead, Broadcom forecast Q1 revenues to range from $4.00 to $4.15 billion, which would beat analyst expectations for $3.96 billion.
The company commented via press release:
Fiscal 2016 was clearly transformative for our company with the acquisition of Broadcom Corporation (NASDAQ:AVGO). We finished the year on a very strong note, delivering a record level of revenue with 9 percent sequential revenue growth in the fourth quarter,” said Hock Tan, President and CEO of Broadcom Limited. “Reflecting the operating leverage from our larger scale and improved profitability, we announced today a doubling of our dividend.
Broadcom shares rose $5.78 (+3.39%) to $176.49 in after-hours trading Thursday. Prior to today’s report, AVGO had gained 23.95% year-to-date, more than doubling the return of the benchmark S&P 500 during the same period.
