“There’s a little bit of concern about whether Santa’s coming this year or not”, this statement issued by Irvine-based chipmaker Braodcom resulted in the lowering by 7% of the share value of the company in New York trading on Friday afternoon. This was the outcome of the not-so-very enthusiastic outlook presented by the company for the fourth quarter.

On Thursday, in a con-call with analysts, Broadcom’s Chief Executive Scott McGregor expressed his doubts saying, “The economy is still not out of the woods yet and it will be a little uncertain about what’s going to happen around Christmas with consumer demand”.

Broadcom’s recent market valuation amounted to $13.8 billion. Comprising both the third and fourth quarter, Broadcom is looking forward to sales of around $1.3 billion. Though it offered a very bleak outlook but still there are chances that costs will rise. Analysts are hoping for profits of $174 million in the current quarter on sales of $1.2 billion.

Analysts on Wall Street had been hoping for a much better outlook from the company and the company too is trying to reach the standards. FBR Capital Markets LLC analyst Craig Berger holds a limited visibility in the holiday season as being responsible for this uncertain outlook of Broadcom. These prospects were presented as the Q3 results were declared which did not live up to the expectations of Wall Street. The sales and profits were down 3% and 48% respectively from the previous year.

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