Broadcom Limited AVGO reported impressive second-quarter fiscal 2017 results. Earnings (excluding stock-based compensation) surged almost 46% from the year-ago quarter and 1.7% sequentially to $3.69 per share.Earnings (including stock-based compensation) were $3.31 per share in the reported quarter, beating the Zacks Consensus Estimate by 29 cents.Non-GAAP revenues from continuing operations were $4.201 billion, which increased 17.9% from the year-ago quarter and 1.3% on a sequential basis. The figure was better than management’s guidance and also slightly better than the Zacks Consensus Estimate of $4.105 billion.Shares jumped 5.4% in pre-market trading. Notably, Broadcom has outperformed the S&P 500 index on a year-to-date basis. The company’s return of 32.7% is higher than the index’s gain of 8.9%.Segment RevenuesWired Infrastructure revenues (50.3% of total revenue) were $2.115 billion, up 2.5% from the year-ago quarter. Sequentially, revenues increased 1.3%, faring better than management’s guidance.Revenues were driven by seasonally strong demand for broadband access and set-top box products as well as growth in enterprise networking.Wireless Communications (27.4%) revenues were up 45.2% year over year but declined 2.1% quarter over quarter to $1.150 billion. Per management, the sequential decline was better than expected due to stronger-than-anticipated end-market demand.Enterprise Storage (16.9%) revenues increased 35.6% from the year-ago quarter and 0.7% sequentially to $712 million. Revenues benefited from strong demand for the company’s Hard Disk Drive (HDD), SSD, SaaS and RAID products, offset by a seasonal decline in Fibre Channel shipments.Industrial & other (5.3%) revenues increased 23.1% year over year and 24.4% sequentially to $224 million primarily driven by higher revenues from Intellectual Property (IP) in the quarter. Management noted that re-sales of its industrial products was significantly strong, which is anticipated to continue going forward.Operating DetailsGross margin (including stock-based compensation) expanded 310 basis points (bps) on a year-over-year basis and 70 bps sequentially to 62.8% due to favorable product mix. Broadcom Limited Price, Consensus and EPS Surprise Broadcom Limited Price, Consensus and EPS Surprise | Broadcom Limited QuoteOperating expenses as percentage of revenues (including stock-based compensation) decreased 380 bps from the year-ago quarter driven by lower research & development expense (down 240 bps) and selling, general & administrative expense (down 140 bps). Sequentially, operating expense gained a modest 40 bps.Per management, operating expense as percentage of revenues was higher than guidance due to higher compensation expense.Operating margin (including stock-based compensation) expanded 690 bps from the year-ago quarter and a modest 30 bps from the previous quarter to 39%. Excluding stock-based compensation, operating margin was 44.1%, which was closer to management’s long term target of 45%.LiquidityAs of Apr 30, 2017, cash & cash equivalents were $4.254 billion as compared with $3.536 billion in the previous quarter. Total debt was $13.567 billion at the end of the first quarter down $14.301 billion from the previous quarter.Broadcom generated cash flow from operations of $1.583 billion, up $230 million from the prior quarter. Capital expenditures were $256 million, down from $352 million in the previous quarter. Free cash flow was almost $1.33 billion (32% of net revenues).AcquisitionBroadcom continues to proceed with the acquisition of Brocade, which is anticipated to be concluded by Jul 31, 2017.GuidanceFor third-quarter fiscal 2017, Broadcom forecasts non-GAAP revenues of almost $4.450 billion (+/- $75 million). The revenue figure reflects almost 6% sequential growth.Management anticipates Wired Infrastructure business revenues to mid-single digits, sequentially, driven by seasonal strength in broadband and sustained cloud data center spending.Wireless Communications revenues are anticipated to improve in second-half fiscal 2017, primarily due to the next-generation product launch from a large North American smartphone customer. The company expects Wireless revenues to increase double-digit percentage in the third-quarter.Broadcom forecasts Enterprise Storage revenues to grow in the low single digits sequentially for the third quarter. Management expects industrial revenues to grow in the mid-single digits, sequentially.Gross margin is anticipated to be 63% (+/- 1%), while operating expenses are expected to be approximately $787 million.The company expects capital expenditures to be approximately $240 million.Zacks Rank & Key PicksCurrently, Broadcom carries a Zacks Rank #3 (Hold). Better-ranked stocks in the broader sector are Applied Optoelectronics AAOI, Quantum Corp QTM and Western Digital WDC. All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Long-term earnings estimates for Applied Optoelectronics, Quantum Corp and Western Digital are pegged at 20%, 20% and 4.75%, respectively.Will You Make a Fortune on the Shift to Electric Cars?Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.It's not the one you think.See This Ticker Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Western Digital Corporation (WDC): Free Stock Analysis Report Quantum Corporation (QTM): Free Stock Analysis Report Broadcom Limited (AVGO): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research