Broadcom Flying After Earnings

Broadcom BRCM released its Q2 earnings results on Monday after the closing bell. The company reported adjusted EPS of $0.72 compared to Wall Street consensus EPS estimates of $0.63. Revenues came in at $1.8 billion, which was in line with consensus revenue estimates. Looking ahead, BRCM sees Q3 revenue of $1.9-2 billion, which compares to current Street consensus of $1.93 billion. "Broadcom delivered solid profitability in Q2 within our non-GAAP target model, with better-than-expected gross margins and record cash flow from operations," said Scott A. McGregor, Broadcom's President and Chief Executive Officer. "Looking forward, we see strong demand for our communications solutions, reinforcing that innovation is driving customer demand. We expect solid growth in revenue and profitability in Q3." In the after hours trading session, BRCM shares have surged nearly 9% to $38.01.