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Broadcom Beats Earnings Estimates, Announces 10-for-1 Stock Split
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Broadcom announced gains for the second fiscal quarter on Wednesday, which surpassed analysts’ estimates. It also announced a 10-for-1 stock split, expected to begin trading with a split adjustment on July 15.
Shares rose about 10% in extended trading.
Here is how the company performed against LSEG consensus estimates for the quarter ending May:
- Earnings per share: $10.96 adjusted vs. $10.84 expected
- Revenue: US$ 12.49 billion against US$ 12.03 billion expected
The chipmaker expects about $51 billion in sales during fiscal 2024, an increase from the company’s previous forecast and slightly higher than consensus expectations of $50.42 billion.
Broadcom reported net income of $2.12 billion during the quarter, or $4.42 per share, compared to $3.48 billion in net income, or $8.15 per share, in the same period last year. previous.
Broadcom is one of the chipmakers benefiting from the artificial intelligence boom because its devices can run the types of AI applications that have enchanted the technology industry. Broadcom said $3.1 billion in sales during the quarter can be attributed to revenue from AI products. For example, Broadcom It works with Googlewhich partially designs its own AI chip called TPU.
“Speaking of AI accelerators, you should know that our hyperscale customers are accelerating their investments to increase the performance of these clusters,” Broadcom CEO Hock Tan said on the earnings call. “And to that end, we just received next-generation custom AI accelerators for these hyperscale customers of ours.”
The company also reported that revenue from VMware, an enterprise software company acquired for $69 billion end of last yearcontributed to sales growth and forecast for the remainder of the year.
The company’s overall revenue increased 43% annually during the quarter. Without VMware sales, it would have increased 12% year over year, Broadcom said.
Correction: The consensus estimate was $12.03 billion. An earlier version misstated the number.