AVGO Stock: Broadcom Delivers Beat-And-Raise Quarterly Report
Chipmaker and infrastructure software provider Broadcom (AVGO) late Thursday beat Wall Street's targets for its fiscal second quarter and with its outlook for the current period. But AVGO stock wavered in extended trading.
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The San Jose, Calif.-based company earned an adjusted $10.32 a share on sales of $8.73 billion for the quarter ended April 30. Analysts polled by FactSet expected earnings of $10.12 a share on sales of $8.7 billion. On a year-over-year basis, Broadcom earnings rose 14% while sales increased 8%.
For the current quarter ending July 30, Broadcom forecast sales of $8.85 billion, up 5%. Analysts had called for $8.72 billion in the fiscal third quarter.
"Our third-quarter outlook projects year-over-year growth, reflecting continued leadership in networking as we support a measured ramp into large scale AI networks," Chief Executive Hock Tan said in a news release.
AVGO Stock Wavers Late
In after-hours trading on the stock market today, AVGO stock alternated between gains and losses. During the regular session Thursday, Broadcom retreated 2.2% to close at 789.95.
Demand for next-generation technologies by hyperscale data center operators drove Broadcom's better-than-expected results in the second quarter, Tan said.
Semiconductor products accounted for 78% of Broadcom's revenue in the second quarter. Meanwhile, infrastructure software contributed 22% of sales.
Chip sales rose 9% to $6.81 billion while infrastructure software sales increased 3% to $1.93 billion.
Broadcom Is On 3 IBD Stock Lists
Broadcom stock is tied for first place in IBD's fabless semiconductor industry group, according to IBD Stock Checkup. AVGO stock has a best-possible IBD Composite Rating of 99.
Further, AVGO stock is on three IBD stock lists: IBD 50, Big Cap 20 and Tech Leaders.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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Source: Investor's Business Daily
