Broadcom Q1 Beats Expectations on Strong Phone Demand

Wireless chip maker Broadcom reported higher-than-expected quarterly revenue and profit, helped by strong sales of its Wi-Fi and broadband chips to handset makers such as Apple and Samsung.

Shares of Broadcom, which also forecast current-quarter revenue above analysts’ expectations, rose 4 percent in extended trading on Tuesday.

The company is benefiting from strong demand for newly launched smartphones such as Apple’s iPhone 6 and Samsung’s Galaxy S6.

Apple sold 74.5 million iPhones in the quarter ended Dec. 27. Many analysts had expected the company to sell fewer than 70 million iPhones.

Samsung said last week that demand for both the flat-screen and curved-screen models of its new flagship Galaxy S6 smartphones is “much higher” than initially planned for.

Broadcom forecast revenue of $2.10 billion, plus or minus $75 million, for the second quarter ending June 30.

Analysts on average were expecting $2.07 billion, according to Thomson Reuters I/B/E/S.

Broadcom’s net income rose to $209 million, or 34 cents per share, in the first quarter, ended March 31, from $165 million, or 28 cents per share, a year earlier.

Excluding items, the company earned 64 cents per share. Revenue rose about 4 percent to $2.06 billion.

Analysts on average had expected earnings of 60 cents per share and revenue of $2.01 billion.

The Irvine, California-based company’s shares closed at $43.98 on Tuesday on the Nasdaq.

(Reporting by Kshitiz Goliya and Lehar Maan in Bengaluru; Editing by Kirti Pandey)

This article originally appeared on Recode.net.

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