Broadcom Ltd. (NASDAQ:AVGO) saw its shares jump on Wednesday after the chipmaker issued a bullish outlook, predicting earnings above expectations.
The Nasdaq-listed firm – which has made a hostile bid for peer Qualcomm Inc.(NASDAQ:QCOM) which reports its results after-hours today – said it expects to report adjusted earnings of US$5.10 per share for its first-quarter to February 4, up 40% from a year earlier and well above the consensus forecast of US$4.95 a share.
READ: Broadcom advances on positive quarterly results, hikes dividend
The tech company also expects that it will generate revenue of US$5.3bn to US$5.35bn in the period, against analysts’ estimates for US$5.3bn.
For the following quarter, Broadcom said that it projects revenue of US$5bn, plus or minus US$75mln, compared with consensus of US$4.9bn.
Broadcom’s CEO, Hock Tan, said: “Looking ahead to our second fiscal quarter, strong data center demand for our wired and enterprise storage products and a seasonal pick up in broadband is expected to offset a greater than seasonal decline in wireless.”
In early New York trading, Broadcom shares were 3.7% higher at US$249.78.
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