Broadcom Ltd (AVGO) Tops Profit, Revenue Expectations

Q1 revenues are expected to beat Wall Street's consensus

By Karl Utermohlen, InvestorPlace Writer

Broadcom Ltd (NASDAQ:AVGO) reported on its fourth quarter after today’s close, topping expectations.

Broadcom Ltd (AVGO)The company impressed in its last period of the fiscal year, earning $4.59 per share on an adjusted basis, topping the $3.59 per share it earned in the year-ago quarter. Analysts were calling for earnings of $4.52 per share, according to Zacks Investment Research.

Broadcom raked in revenue of $4.84 billion during the period, ahead of $4.14 billion it brought in a year ago. The Wall Street consensus estimate was for revenue of $4.83 billion, according to Zacks.

The company’s gross margin for the period was $2.38 billion, or 49.2% of net revenue. A quarter ago, its gross margin was $2.15 billion, or 48.2% of net revenue, and a year ago it was $2.17 billion or 52.5% of net revenue.

Broadcom’s operating expenses for the quarter were $1.52 billion, topping the previous quarter expenses of $1.50 billion and the year-ago expenses of $1.79 billion.

For the fiscal year, the company brought in net revenue from continuing operations of $17.37 billion, a 33% increase from the $13.24 billion in fiscal 2016. Net ime was $1.89 billion, or $4.27 per diluted share, ahead of the net loss of $1.86 billion, or $4.86 per diluted share in 2016.]

Broadcom added that it foresees its first quarter of fiscal 2018 as bringing in net revenue in the range of $5.23 billion and $5.38 billion, which is better than analysts’ projections of $4.82 billion.

AVGO stock gained 1.7% after hours Wednesday.

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