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Broadcom stock jumps 5% after earnings come in higher than expected

Broadcom Inc. enjoyed a more profitable start to its fiscal year than expected, and shares rose in after-hours trading Thursday. The chip maker reported fiscal first-quarter net income of $471 million, or $1.12 a share, on revenue of $5.79 billion, up from $5.33 billion a year ago. After adjustments for discontinued operations, stock-based compensation and other effects, Broadcom claimed quarterly earnings of $5.55 a share, up from $5.12 a share a year ago. Analysts on average expected adjusted earnings of $5.22 a share on sales of $5.82 billion, according to FactSet. Broadcom said in its previous earnings report that it would stop providing quarterly guidance; the company did not update its annual revenue guidance in Thursday’s report. Broadcom stock gained more than 5% in immediate after-hours trading following the release of the report, after closing Thursday with a 1.1% decline at $268.20. Broadcom shares have gained 2.9% in the past 12 months, as the S&P 500 index {s; spx] has gained 2.2%.

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