Broadcom Inc (NASDAQ: AVGO) stock is up 4.0% in extended trading on Thursday after the semiconductor company reported market-beating results for Q1 and gave solid future guidance.
Broadcom Q1 results
- Net income stood at $2.47 billion that translates to $5.59 a share.
- In the year-ago period, net income was capped at $1.38 billion or $3.05 a share.
- Adjusted EPS printed at $8.39, as per the earnings press release.
- At $7.71 billion, revenue was up 16% on a year-over-year basis.
- FactSet consensus was for $8.13 of adjusted EPS on $7.61 billion in revenue.
- Chip sales jumped 20% in the recent quarter, ahead of the experts’ forecast.
- Infrastructure software sales were up 5.0%, slightly shy of Street expectations.
Broadcom future outlook
For the fiscal second quarter, Broadcom forecasts $7.9 billion in revenue versus analysts at $7.43 billion. On CNBC’s “Closing Bell”, Bernstein’s Stacy Rasgon said:
It was a really solid beat and raise. The quarter looks pretty good. Margins look really good. They did 75.5% gross margins and may even be guiding them up again, at least implicitly. They have enough dry powder on top the buyback programme to execute a deal if they find one.
Broadcom has a target of $10 billion in stock repurchase this year. $3.10 billion of that, the chipmaker revealed, has been executed already. Shares are still down over 10% for the year.
The post Broadcom Q1 results: ‘margins look really good’ appeared first on Invezz.
Source: https://invezz.com/news/2022/03/03/broadcom-q1-results-margins-look-really-good/