When Broadcom Inc. (NASDAQ: AVGO) released fiscal second-quarter financial results after markets closed Thursday, the semiconductor maker said that it had $5.14 in earnings per share (EPS) and $5.74 billion in revenue. That compared with consensus estimates of $5.35 in EPS and revenue of $5.73 billion. The same period of last year reportedly had EPS of $5.85 on $5.45 billion in revenue.
During the most recent quarter, total revenue increased 4% year over year. This consisted of Semiconductor Solutions revenues that declined 2% year over year to $4.03 billion and Infrastructure Software revenues that increased 21% to $1.72 billion.
At the end of the quarter, cash and cash equivalents totaled $9,207 million, up from $6,444 million at the end of the prior quarter.
The board of directors approved a quarterly cash dividend of $3.25 per share that is payable on June 30 stockholders of record at the close of business on June 22.
Looking ahead to the fiscal third quarter, the company expects to see net revenues of $5.75 billion, give or take $150 million, and adjusted EBITDA of $3.22 billion, plus or minus $75 million. Consensus estimates call for $5.32 in EPS and $5.79 billion in revenue for the quarter.
Hock Tan, president and CEO of Broadcom, commented:
Second quarter results were in-line with our 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. We remain focused on investing in our diverse set of mission critical semiconductor and software franchises, while carefully managing our expenses in this uncertain environment.
Broadcom stock traded up 4% at $321.00 early Friday, in a 52-week range of $155.67 to $331.58. The consensus price target is $301.44.
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