Broadcom 4Q earnings slip as expenses increase
IRVINE, Calif. (AP) — Communications chip maker Broadcom Corp. on Tuesday posted a slightly smaller fourth-quarter profit due to rising expenses. Broadcom also announced a 10 percent increase in the company's dividend.
Broadcom, based in Irvine, Calif., reported net income of $251 million, or 43 cents per share. That was down about 1 percent from earnings of $254 million, or 45 cents per share, in the October-December period a year earlier.
Excluding one-time items, Broadcom posted adjusted earnings of 76 cents per share in the latest period. That was slightly ahead of the consensus forecast of analysts surveyed by FactSet, who expected adjusted earnings of 74 cents per share.
Revenue rose 14 percent to $2.08 billion, topping analysts' expectations for $2.06 billion.
Earnings declined largely because expenses increased more than revenue. Total operating costs and expenses jumped nearly 18 percent to about $1.82 billion. Research and development costs rose 23 percent.
Broadcom said its board authorized an increase in the company's quarterly cash dividend to 11 cents per share from the previous 10 cents per share. The dividend is payable on March 4 to shareholders of record as of Feb. 15.
Broadcom's shares fell 47 cents, or 1.4 percent, to $33.24 in after-hours trading. Before the company released its earnings, the stock fell 35 cents to close at $33.71.