Broadcom Inc. (NASDAQ: AVGO) said on Thursday that its chip sales in the fiscal first quarter fell shy of Wall Street estimates. Software sales, it added, were better than expected in Q1.
Broadcom shares, that you can learn to buy online here, were reported less than 1% up in after-hours trading on Thursday. Including the price action, the stock is now exchanging hands at £314.88 per share after recovering from a low of £121 per share in March 2020, when COVID-19 was at its peak.
Broadcom’s Q1 financial results versus analysts’ estimates
Broadcom said that its net income in the first quarter printed at £940 million, that translates to £2.19 per share. In the same quarter last year, its net income was capped at a sharply lower £223.82 million, or 53.26 pence per share.
On an adjusted basis, the semiconductor firm earned £4.76 per share in Q1 versus the year-ago figure of £3.78 per share. Broadcom said that it generated £4.79 billion of revenue in the recent quarter – an increase from £4.22 per share last year.
According to FactSet, experts had forecast the company to report £4.76 billion of revenue in the first quarter. Their estimate for adjusted per-share earnings stood at a lower £4.72. In the prior quarter (Q4), Broadcom’s net income had registered at £940 million.
Chief Executive Hock Tan commented on the earnings report on Thursday and said:
“We executed well during our first fiscal quarter, driving 14% organic growth year on year. This growth reflects the critical role our technology franchises play in this environment of accelerated digital transformation.”
Broadcom’s chip and software sales in Q1
At £3.53 billion, chip sales, the San Jose-based company added, saw a 74% annualised growth. Infrastructure software sales, on the other hand, jumped 26% in Q1 to £1.26 billion. In comparison, analysts had called for £3.54 billion, and £1.20 billion of sales from these two segments, respectively.
For the fiscal second quarter, Broadcom now forecasts roughly £4.68 billion of revenue versus a FactSet Consensus of £4.56 billion. In separate news from the U.S, commercial property company CoStar Group withdrew its bid to buy CoreLogic on Thursday.
Broadcom performed largely upbeat in the stock market last year with an annual gain of close to 40%. At the time of writing, it is valued at £130.31 billion and has a price to earnings ratio of 70.10.
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