Broadcom Wins Big on Q2 Earnings
Broadcom released better-than-expected quarterly results after the markets closed on Thursday, and its shares were handily higher early Friday.
When Broadcom Ltd. (NASDAQ: AVGO) released its most recent quarterly results after the markets closed on Thursday, the company posted $3.69 in earnings per share (EPS) and $4.19 billion in revenue. Consensus estimates had called for $3.36 in EPS and revenue of $4.11 billion. The fiscal second-quarter of last year reportedly had EPS of $2.53 and $3.54 billion in revenue.
Gross margin from continuing operations was $2,652 million, or 63.1% of net revenue. This compares with $2.14 billion, or 60.0% of net revenue, in the same quarter of last year.
In terms of the outlook for the fiscal third quarter, the company expects to see net revenues of $4.45 billion, give or take $75 million, with a gross margin of 62% to 64%. The consensus estimates are $3.68 in EPS and $4.26 billion in revenue.
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During the fiscal second quarter, Broadcom generated $1,583 million in cash from operations and spent $256 million on capital expenditures. On the books, its cash and cash equivalents totaled $4.25 billion at the end of the quarter, up from $3.54 billion at the end of the same period of last year.
Hock Tan, president and CEO of Broadcom, commented:
We delivered strong financial results for our second fiscal quarter with revenue, gross margin and EPS all above the top end of guidance. Anticipating that end markets will remain healthy, we expect third fiscal quarter revenue growth of approximately six percent sequentially, driven by solid growth from our wired segment and a seasonal second half ramp in our wireless segment.
Shares of Broadcom were last seen up 5.5% at $247.62 on Friday, with a consensus analyst price target of $251.84 and a 52-week range of $142.27 to $242.89.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
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