Broadcom Corporation (NASDAQ:BRCM) shares are trading lower in the pre-market session after the company provided worse than-estimated profit forecast for the fourth quarter stating softer demand, over shadowing its better –than-estimated third quarter earnings.
The company said that now it projects to generate revenue of $1.7 billion to $1.8 billion in its fourth quarter due to falling demand for the company’s products, missing analyst estimates of $2.01 billion.
Just a month, the company bought NetLogic Microsystems Inc. (NETL) by paying $3.7 billion in order to enhance its portfolio of network-focused processors.
Executives said the company will be cautious with spending during the current soft environment.
In the third quarter, the company said that it earned $270 million, or 48 cents a share, compared to a year ago profit of $328 million, or 60 cents a share. On an adjusted basis, the company reported EPS of 82 cents, topping analysts’’ estimates by 5 cents.
Revenue during the latest quarter grew 8.4% to $1.96 billion, almost matching analysts’ target of $1.9 billion to $2 billion.
Gross product margin fell to 49.5% from 50.1%.
Shares of BRCM slid 4.89% to $34.05 in the pre-market session after falling 4.25% in the regular session on Tuesday.
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