Shares of Broadcom Corp. soared in after-hours trading Thursday after the company posted second-quarter earnings results that beat Wall Street expectations.
The Irvine chipmaker said its net income in the period fell to $15.1 million from $68.3 million a year earlier. Sales were down 6% to $604.9 million.
Excluding charges for acquisitions, lawsuit settlement payments and other onetime items, Broadcom’s earnings were $122.2 million, unchanged from a year ago.
Analysts were looking for profit excluding onetime charges of $90 million on sales of $576 million.
Shares of the company jumped 11% to $43 in after-hours trading.
“Broad-based strength in each of our major target markets enabled Broadcom to achieve better second quarter results than we were expecting,” said Scott McGregor, Broadcom’s president and chief executive.
McGregor said the company “generated strong cash flow from operations, which enabled us to continue to invest in new growth initiatives as well as to fund repurchases of our stock, both of which serve our goal of increasing shareholder value over the long term.”
Broadcom said it expects sales of $660 million to $665 million in the third quarter,better than current forecasts.
The company said its took a $110 million charge in the second quarter to settle shareholder lawsuits.
