AVGO Stock: Broadcom Stock Jumps On Earnings Beat

Chipmaker Broadcom (AVGO) late Thursday easily surpassed Wall Street’s targets for its fiscal first quarter. AVGO stock jumped in extended trading.

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The San Jose, Calif.-based company earned an adjusted $8.39 a share on sales of $7.71 billion for the quarter ended Jan. 30. Analysts had expected Broadcom earnings of $8.13 a share on sales of $7.61 billion, according to FactSet. In the year-earlier period, Broadcom earned $6.61 a share on sales of $6.65 billion.

In after-hours trading on the stock market today, AVGO stock popped 3% higher, near 596. During the regular session Thursday, AVGO stock slid 1.2% to close at 578.60.

Earnings report details to follow.

AVGO Stock Ranks No. 11 In Industry Group

Broadcom makes wireless chips for smartphones, such as Apple (AAPL) iPhones. It also makes semiconductors for broadband communications, networking, storage and industrial applications. Plus, Broadcom has a growing business in infrastructure software for mainframes, data centers and cybersecurity.

AVGO stock has been consolidating for the past nine weeks with a buy point of 677.86, according to IBD MarketSmith charts. The buy point is 10 cents above the stock’s all-time high of 677.76. AVGO stock reached that high-water mark on Dec. 28, three weeks after the company delivered better-than-expected results for its fiscal fourth quarter.

AVGO stock ranks No. 11 out of 30 stocks in IBD’s fabless semiconductor industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 91 out of 99. IBD’s Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths. The best growth stocks have a Composite Rating of 90 or better.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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