- Broadcom’s revenue jumps to £4.53 billion in the second quarter.
- The U.S. company posts £4.06 of adjusted earnings per share in Q2.
- Broadcom suspends full-year guidance on Coroanvirus uncertainty.
Broadcom Inc. (NASDAQ: AVGO) released its quarterly earnings report on Thursday that slightly topped analysts’ estimate for revenue. In January, Broadcom sold Symantec cybersecurity services to Accenture. Broadcom’s president, Hock Tan, commented on the financial results on Thursday and said:
“Second-quarter results were in line with out expectations, and saw limited impact from the effects of COVID-19. Looking ahead, our third-quarter guidance for semiconductors reflects a surge in demand from cloud, telecom and enterprise customers, offset by supply-chain constraints and an expected substantial reset in wireless.”
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Shares of the company were reported about 1% up in after-hours trading on Thursday. At £246.50, Broadcom is roughly 3% down year to date in the stock market after recovering from a low of £132.60 in March. In comparison, the broader S&P 500 index is flat on average in 2020 so far. Learn more about value investing strategy.
Broadcom reports £385.53 million in net income
At £385.53 million, the American company’s net income came in significantly lower in Q2 as compared to £545.91 million in the same quarter last year. Broadcom made £4.06 of adjusted earnings per share in the recent quarter versus the year-ago figure of £4.12 per share.
In terms of revenue, the U.S. company jumped from £4.36 billion last year to £4.53 billion in the second quarter. According to FactSet, experts had forecast the company to print £4.50 billion in revenue in Q2. Their estimate for earnings per share was capped at £4.06.
Broadcom suspended its financial guidance for full-year in March. For Q3, the company said that it now estimates its revenue to lie in the range of £4.42 billion to £4.65 billion. Analysts, on the other hand, forecast its Q3 revenue at £4.57 billion.
Broadcom reports £3.18 billion of chip sales in Q2
In the recently ended quarter, the San Jose-headquartered firm reported £3.18 billion of chip sales and £1.36 billion of infrastructure software sales. Analysts had anticipated its chip sales to print at £3.15 billion (2.5% decline) and infrastructure software sales at £1.35 billion (21% increase).
Broadcom’s performance in the stock market was reported fairly upbeat in 2019 with an annual gain of about 30%. At the time of writing, the U.S. based developer, designer, manufacturer, and global supplier of semiconductor and infrastructure software has a market cap of £97.29 billion and a price to earnings ratio of 51.02.