Igor Golovniov Lightrocket | Getty Images
Broadcom posted earnings for the second fiscal quarter that beat analysts’ estimates. It also announced a 10-for-1 stock split, set to begin trading on an adjusted split basis on July 15.
Shares rose about 10% in extended trade.
Here’s how the company stacks up against LSEG’s consensus estimate for the quarter ended in May:
- Earnings per share: $10.96 adjusted vs $10.84 expected
- results: $12.49 billion vs $12.03 billion expected
The chipmaker expects sales of about $51 billion during fiscal 2024, an increase from the company’s previous forecast, and slightly higher than the consensus expectation of $50.42 billion.
Broadcom reported $2.12 billion in net income during the quarter, or $4.42 per share, compared to $3.48 billion in net income, or $8.15 per share, in the year-ago period.
Broadcom is one of the chipmakers that has benefited from the artificial intelligence boom as its devices can run a wide range of AI applications that have attracted the attention of the tech industry. Broadcom said $3.1 billion in sales during the quarter could be attributed to revenue from its AI products. For example, Broadcom works with Googlewho designed their own AI chip called TPU.
The company also said that revenue from VMware, the enterprise software company it acquired for $69 billion late last year, contributed to its growth and sales forecast for the rest of the year.
The company’s overall revenue rose 43% year-over-year during the quarter. Without VMware sales, they would have been up 12% year over year, Broadcom said.
Correction: The consensus estimate is $12.03 billion. An earlier version misstated the figure.
