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.
Also: Broadcom closes CA Technologies purchase, then sells CA's Veracode unit for $950 million
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.