AVGO Stock: Broadcom releases quarterly report on beats and raises

Chipmaker and infrastructure software provider Broadcom (AVGO) on Thursday night beat Wall Street’s targets for its fiscal second quarter and its outlook for the current period. But AVGO stock faltered in extended trading.




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The San Jose, Calif.-based company earned $10.32 per adjusted share on sales of $8.73 billion for the quarter ended April 30. Analysts polled by FactSet had expected earnings of $10.12 a share on sales of $8.7 billion. Year-over-year, Broadcom’s profits rose 14%, while sales rose 8%.

For the current quarter ending July 30, Broadcom forecast sales of $8.85 billion, up 5%. Analysts had called for $8.72 billion in the third fiscal quarter.

“Our third quarter outlook calls for year-over-year growth, reflecting continued leadership in networking as we support a measured ramp-up of large-scale AI networks,” the director said. General Hock Tan in a press release.

AVGO Stock Wavers Overdue

In after-hours trading today, AVGO shares alternated between gains and losses. During Thursday’s regular session, Broadcom fell 2.2% to close at 789.95.

Demand for next-generation technologies from large-scale data center operators drove Broadcom’s better-than-expected second-quarter results, Tan said.

Semiconductor products accounted for 78% of Broadcom’s second-quarter revenue. At the same time, infrastructure software contributed 22% of sales.

Chipset sales rose 9% to $6.81 billion while infrastructure software sales rose 3% to $1.93 billion.

Broadcom is on 3 IBD Stock Lists

Broadcom stock tied for the top spot in IBD’s fabless semiconductor industry group, according to IBD Stock Checkup. The AVGO stock has the best possible IBD composite rating of 99.

Additionally, AVGO shares are on three IBD stock lists: IBD 50, Big Cap 20 and Tech Leaders.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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