Mixed Top-line
The continued weakness in the core Semiconductor Solutions segment was more than offset by strong performance by Infrastructure Software, and total revenues moved up 1% annually to $5.86 billion. Analysts were looking for a faster top-line growth.
Earnings Dip
At $5.25 per share, adjusted earnings, excluding special items, was down 5% from last year and slightly below the consensus estimate. Reported profit dropped to $385 million or $0.74 per share from $471 million or $1.12 per share in the first quarter of 2019.
Also see: Broadcom Q4 2019 Earnings Conference Call Transcript
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Hock Tan, President and CEO said, “The fundamental semiconductor backdrop has been improving, and we did not see any material impact on our businesses due to COVID-19 in our first quarter. However, visibility in our global markets is lacking and demand uncertainty is intensifying.”
Guidance
The company said it is withdrawing the full-year guidance issued earlier, in view of the impact of the Covid-19 outbreak on the global business environment. For the second quarter of 2020, Broadcom expects revenues to be $5.7 billion, plus of minus $150 million. Adjusted EBITDA is expected to be $3.14 billion in the April-quarter, plus or minus $75 million, which is 55% of revenue.
In December, the company had paid a cash dividend of $3.25 per share, totaling $1.30 billion.
Broadcom’s shares closed Thursday’s regular trading lower and continued to lose during the extended session, following the announcement. The stock dropped around 30% since the beginning of 2020, paring most of last year’s gains.
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