Chipmaker Broadcom (AVGO) late Thursday trounced Wall Street’s target for earnings in its fiscal first quarter, but came up short on revenue. The Broadcom earnings news sent its stock higher in extended trading.
The San Jose, Calif.-based company earned an adjusted $5.55 a share on sales of $5.79 billion in the quarter ended Feb. 3. Analysts expected Broadcom earnings of $5.23 a share on sales of $5.82 billion. On a year-over-year basis, Broadcom earnings per share rose 8% while sales climbed 9%.
For the full year, Broadcom expects to generate sales of $24.5 billion. Analysts were looking for $24.3 billion.
Broadcom stock jumped 5.2% in after-hours trading on the stock market today. During the regular session, it slid 1.1% to 268.20.
Broadcom Earnings: Networking Chip Sales Buoy Results
Broadcom stock hit an all-time high of 286.63 on Feb. 20. It briefly touched a buy point of 285.78 on that day before retreating. It had been consolidating for 64 weeks. The new buy point for Broadcom is now 286.73.
“Strong results in our networking business supported our semiconductor solutions segment, despite the anticipated sharp decline in wireless,” Chief Executive Hock Tan said in a news release. “Additionally, our infrastructure software segment performed extremely well as we made good progress with the CA business integration into Broadcom.”
Similar to its peers, Broadcom has seen a slowdown in business in China that has impacted demand for its chips, he said.
Broadcom designs, develops and supplies semiconductor and infrastructure software products.
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