Investing.com - Broadcom Ltd's (NASDAQ:AVGO) shares turned lower on Friday, despite the company’s report of better-than-expected earnings. During Thursday’s after hours session, Broadcom reported net income of $1.14 a share, on sales of $4.46 billion, up 7% from $4.19 billion in the year-ago quarter.
Adjusted EPS was $4.10, well above the $2.89 from the comparable period and also above the $4.03 per share analysts forecast. Revenue was also a beat, with analysts estimating revenue in the recent quarter would come in at $4.45 billion.
Analysts have been optimistic about Broadcom's future, hoping the company would benefit from supplying parts for Apple Inc (NASDAQ:AAPL)'s upcoming iPhone. But, commenting after the latest results Summit Redstone Partners analyst Kinngai Chan had this to say about Broadcom's future: "We expect slower content growth in its wireless communications, secular decline in its hard-disk drive business and a more mixed demand environment in its wireline communications end-market to serve as headwinds".
Broadcom's shares were down 9% Friday afternoon.