A Broadcom-powered wireless charging station. Source: Broadcom.
Broadcom (NASDAQ: BRCM) shares jumped as much as 3.9% higher after Tuesday's closing bell, following the release of strong second-quarter results.
The designer of communications-focused semiconductors saw sales decline 2% year-over-year to $2.0 billion. Adjusted earnings fell 7% to $0.65 per share.
Revenue was in line with analyst estimates, but Street projections called for earnings near $0.61 per share. Broadcom beat the bottom-line consensus target.
Non-GAAP earnings chiefly excluded charges related to stock-based compensation, alongside restructuring costs as Broadcom exited the cellular baseband market.
In prepared remarks, Broadcom CEO Scott McGregor explained how a newfound focus on broadband, connectivity, and infrastructure markets will help. "We will be a stronger company, as gross margins, profitability and cash flows will noticeably improve, providing an opportunity to return more capital to our shareholders," McGregor said.
Broadcom shares have gained 31% year to date and 43% over the past 52 weeks. In after-hours action, the stock reached prices not seen since early 2011.
