Broadcom Inc Gains Earnings, Guidance Beat
Shares of Broadcom (AVGO:US) gained more than 8% last week, helped by the chipmaker’s better-than-expected results for its first fiscal quarter.
Broadcom reported adjusted earnings per share of $10.33 on revenue of $8.92 billion, better than the average analyst consensus for earnings of $10.16 per share on revenue of $8.9 billion.
“This growth was driven by our strong partnerships with customers and accelerated adoption of our next generation technologies. As we look into fiscal 2023, our increased R&D investments during the preceding years position us to extend our leadership in next generation products within the end markets we address,” said Hock Tan, President and CEO of Broadcom.
The beat was fueled by stronger-than-expected sales in the company’s largest business by revenue generated - Semiconductor Solutions.
Broadcom also reported an adjusted Ebitda of $5.68 billion and an adjusted operating income of $5.43 billion. For the ongoing quarter, AVGO expects to report an adjusted Ebitda of approximately 64.5% of projected revenue. This translates into $8.7 billion revenue for FQ2, higher than the expected $8.68 billion.
Several Congress members regularly invested in AVGO stock last year. Representatives Kurt Schrader, Kathy Manning, Ro Khanna, and Diana Harshbarger all bought AVGO shares last year.
This year, Rep. Harshbarger sold some shares in January while her colleague Daniel Goldman was buying the stock on January 31, when it closed at $585.01.
Broadcom stock price trades at $634.00 per share on Monday and is up over 14% year-to-date.
