Broadcom’s net income climbs to £940 million in the fiscal fourth quarter

Broadcom Inc. (NASDAQ: AVGO) reported its financial results for the fiscal fourth quarter on Thursday that came in better than Wall Street estimates. The company also named its new CFO and gave guidance for the future that topped analysts’ estimates.

Despite the upbeat earnings report, Broadcom shares (learn more: how to buy stocks for beginners) slipped close to 2.5% in after-hours trading on Thursday. The U.S. company now has a per-share price of £300 versus £126 per share in March, when the impact of COVID-19 was at its peak. Broadcom had started the year at £242 per share.

Broadcom’s Q4 financial results versus analysts’ estimates

Broadcom said that its net income in the fourth quarter printed at £940 million that translates to £2.20 per share. In the comparable quarter of last year, its net income was capped at a lower £614.48 million or £1.48 per share. In the prior quarter (Q3), Broadcom registered £462 million of net income, as per the report published in September.

On an adjusted basis, the semiconductor and software company earned £4.77 per share versus the year-ago figure of £4.05 per share. In terms of revenue, Broadcom reported £4.86 billion in Q4 as compared to £4.34 billion in the same quarter last year.

According to FactSet, experts had forecast the company to post £4.83 billion of revenue in the recent quarter. Their estimate for per-share earnings stood at £4.69.

At £3.63 billion, Broadcom’s chip sales were up 6% on an annualised basis in Q4, while infrastructure software sales jumped 36% in the fourth quarter to £1.23 billion. In comparison, analysts had expected £3.61 billion and £1.22 billion of sales from the two segments, respectively.

Broadcom names Kirsten Spears as its new Chief Financial Officer

Broadcom named Kirsten Spears as its new CFO on Thursday who has been serving as the Principal Accounting Officer at Broadcom. The current Chief Financial Officer, Tom Krause, the San Jose-based company said, will now lead its six-division infrastructure software group. Broadcom also named Charlie Kawwas on Thursday as its new Chief Operating Officer.

For the fiscal first quarter, the U.S. company now forecasts £4.96 billion of revenue versus the analysts’ estimates of a slightly lower £4.90 billion.

Broadcom performed largely upbeat in the stock market last year with an annual gain of roughly 35%. At the time of writing, it is valued at £124.59 billion and has a price to earnings ratio of 76.90.