Broadcom Corp. shares continued to modestly climb Wednesday, a day after the Irvine-based chipmaker laid out its corporate strategy to analysts for the upcoming year.
Shares are up 1% in midday trading to a market value of about $25 billion as investors seized upon a rosier sales outlook for the current quarter and several initiatives Broadcom management plans to enact to improve shareholder value.
Stronger than expected sales of the iPhone 6 and 6 Plus prompted Broadcom to raise its fourth quarter revenue target between $2.07 billion and $2.15 billion, up from a previous range of $2 billion to $2.15 billion.
Analysts on average are forecasting sales of $2.09 billion.
The company is believed to have supplied a Wi-Fi networking chip for Apple Inc.’s latest smartphone models.
Broadcom also announced a $1 billion share repurchase program yesterday and raised its quarterly dividend 2 cents to 14 cents per share.
Management spent much of the three-hour presentation talking up shareholder-focused initiatives, which prompted several investment banks, including Topeka, Brean and Oppenheimer, to raise their price targets.
