Categories AlphaGraphs, Earnings, LATEST, Technology

Broadcom earnings soar above estimates, trigger stock rally

Benefitting from the growing demand for data center products, Broadcom’s (AVGO) earnings rose sharply in the third quarter and exceeded estimates. The impressive results triggered a stock rally and shares of the chipmaker gained about 3% following the announcement.

Adjusted profit, excluding the impact of one-off items, advanced to $2.26 billion or $4.98 per share from $1.87 billion or $4.10 per share in the year-ago quarter and far exceeded analysts’ forecast. Net income attributable to common shareholders was $1.20 billion or $2.71 per share, higher than $0.51 billion or $1.14 per share reported last year.

Broadcom Limited third quarter 2018 earnings
Broadcom Limited Q3 2018 Earnings Infographic

There was a 13% annual growth in net revenues to $5.06 billion during the three-month period. The uptick was driven by a 70% surge in revenues of the Enterprise Storage division which mainly consists of the company’s fast-growing datacenter business. Among the other segments, Wired Infrastructure registered a 4% rise, while the Wireless Communications division remained flat.  The top line was in line with expectations.

The impressive results triggered a stock rally and shares of the chipmaker gained about 3% following the announcement

“Datacenter demand is driving strong growth in more than 50% of our consolidated revenue. Through the strength of our franchise business model, we delivered another quarter of sustained revenues and strong free cash flows,” said CEO Hock Tan.

During the quarter, the company repurchased 24 million shares for about $5.38 billion. It also declared a quarterly cash dividend of $1.75 per share, to be paid on September 28, 2018, to stockholders of record on September 19, 2018.

Broadcom turns to software with odd $19-billion deal

Fellow chipmaker Qualcomm (QCOM), which recently made an unsuccessful bid to acquire Broadcom, reported a sharp increase in its third-quarter earnings, helped by reduced costs and an impressive performance by the technology licensing segment. Earnings of Intel (INTC) surged 78% in the second quarter on the strength of the company’s datacenter business.

Broadcom shares hit an all-time high in November last year as they continued the steady ascent that started several years ago. However, the stock lost momentum after hitting the peak and dropped about 17% since the beginning of the year. It gained more than 3% in the extended trading hours Thursday.

Broadcom reports revenue jump of 20% at $5.01 billion in Q2

Most Popular

Thermo Fisher Scientific (TMO) Q4 earnings drop despite higher revenues

Thermo Fisher Scientific Inc. (NYSE: TMO) announced fourth-quarter 2022 financial results, reporting a double-digit fall in adjusted earnings and an increase in revenues. Fourth-quarter revenues increased 7% annually to $11.5

Altria Group (MO) Q4 2022 Earnings: Key financials and quarterly highlights

Altria Group Inc. (NYSE: MO) reported fourth quarter 2022 earnings results today. Net revenues decreased 2.3% year-over-year to $6.1 billion. Net earnings attributable to Altria increased 65.6% to $2.6 billion

AMD Earnings: Advanced Micro Devices Q4 revenue up 16%, profit drops

Semiconductor company Advanced Micro Devices, Inc. (NASDAQ: AMD) reported a decline in fourth-quarter earnings, despite an increase in revenues. Earnings, excluding special items, dropped to $0.69 per share in the

Add Comment
Viewing Highlight