Broadcom Corp. said Tuesday that profit rose 22%, beating analysts' estimates, on higher demand from communications equipment companies.
First-quarter net income rose to $74.3 million, or 14 cents a share, from $61 million, or 10 cents, a year earlier, Irvine-based Broadcom said. Sales rose 15% to $1.03 billion, also beating analysts' projections.
Sales of semiconductors to companies that make fixed-line phone equipment were higher than expected, Chief Executive Scott McGregor said. Those gains made up for increased spending to break into the mobile phone chip market. A royalty payment from Verizon Wireless also boosted profit.
"Their core is stable and improving," said Ruben Roy, an analyst at Pacific Crest Securities in Stamford, Conn.
Broadcom shares jumped $2.13 to $25.68 in extended trading after closing at $23.55 before the earnings announcement. The shares have lost 9.9% this year.
Analysts predicted net income of 7 cents a share and sales of $991.7 million, according to the average of estimates in a Bloomberg survey.