Broadcom (Nasdaq: BRCM) earned 30 percent more than analysts expected in the third quarter.
After market close Thursday, the maker of network chips reported third quarter net income of $27.2 million, or 26 cents per share, not counting acquisition-related costs. First Call's survey of 17 analysts predicted a profit of 20 cents per share for the quarter ended Sept. 30.
Third quarter revenue increased to $138.4 million, up 149 percent from the year-ago period, when Broadcom earned $5.2 million, or 5 cents per share, on revenue of $55.5 million. More product offerings and more customers combined to boost sales, said Henry T. Nicholas III, president and CEO.
"Our third quarter performance confirmed the strength of our position across the markets in which we compete, as we continued to experience robust demand for our existing networking, set-top and cable modem products while setting the stage for future sales of new products," he said.
Lower tax rates helped. The company's income tax rate fell to 30.6 percent, compared to 35 percent in previous quarters.
Broadcom recorded one-time charges of $4.1 million, or 3 cents per share, related to acquisitions of HotHaus Technologies and AltoCom. Including those costs, Broadcom earned 23 cents per share.
Shares of Broadcom slid 2 11/16 to 116 13/16 in Thursday's regular trading prior to the earnings report. All 18 Wall Street firms surveyed by Zack's Investment Research maintain some sort of "buy" rating on Broadcom.>