Broadcom on Thursday published its fourth quarter 2018 financial results, beating market estimates and raising its target dividend. Shares were up in after-hours trading.
The semiconductor device supplier posted non-GAAP earnings of $5.85, up 27 percent year-over-year. Revenue came to $5.44 billion, up 12 percent from the prior year.
Wall Street was looking for non-GAAP earnings of $5.58 on revenue of $5.39 billion.
For the full 2018 fiscal year, Broadcom's non-GAAP EPS was $20.82, up 30 percent from the prior year. Revenue in FY 2018 was $20.85 billion, up 18 percent year-over-year.
The fiscal year ended November 4, 2018, a day before Broadcom completed its acquisition of CA Technologies. The financial results published Thursday do not include any contribution from CA Technologies.
Free cash flow from operations grew 50 percent in fiscal year 2018 to $8.2 billion. Consequently, Broadcom is raising its target dividend by 51 percent to $2.65 per share per quarter for fiscal year 2019.
"Strong operating performance in the fiscal fourth quarter caps a year of solid results that continues to reinforce the sustainability of our business model," CEO Hock Tan said in a statement. Revenue, Tan said, grew thanks to demand for Broadcom's networking, enterprise storage, wireless and industrial products, while operating margin continued to progressively expand to 50 percent.
Broadcom expects to see double-digit revenue growth in fiscal year 2019, with a revenue outlook of $24.5 billion.
"Sustained demand within our semiconductor segment will be augmented by the newly acquired mainframe and enterprise software businesses to our infrastructure software segment," Tan said.