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Wed, September 30 at 4:00PM ET

Broadcom Earnings: AVGO Stock Sinks Despite Q2 Earnings Beat

The semiconductor solutions segment's revenue missed expectations

Broadcom (NASDAQ:AVGO) unveiled its latest quarterly earnings results late today, bringing in a profit that topped what analysts called for, yet the company’s semiconductor solutions revenue was below what analysts called for, sending AVGO stock declining after hours Thursday.

Broadcom Earnings
Source: Broadcom

The San Jose, Calif.-based semiconductor business said that for its second quarter of its fiscal 2019, it posted adjusted earnings of $5.21 per share when excluding certain items. Wall Street was projecting the brand to amass adjusted earnings of roughly $5.16 per share, according to data compiled by Refinitiv.

Broadcom added that its sales for the three-month period came in at $5.52 billion, which is stronger than the $5.68 billion that analysts predicted, according to Refinitiv. The brand’s revenue increased about 10% when compared to the year-ago quarter, per its results.

The company’s semiconductor solutions segment, which is its biggest segment, brought in sales of $4.09 billion, which missed the $4.18 billion that analysts called for, per FactSet. Broadcom’s infrastructure software segment, which includes contributions from the CA business the company acquired in 2018, tallied up sales of $1.41 billion, missing the $1.37 billion FactSet guidance.

The business also lowered its guidance for the full fiscal year 2019, saying it now projects that it will bring in $22.50 billion in revenue in that period. The Refinitiv consensus guidance is for revenue of $24.31 billion for the 2019 fiscal year.

AVGO stock is down about 8.1% after hours Thursday following the company’s quarterly earnings figures, which saw its strongest segment fail to live up to expectations. Shares had been gaining about 0.7% during regular trading hours in anticipation of the company’s results.

Article printed from InvestorPlace Media, https://investorplace.com/2019/06/broadcom-earnings-avgo-stock-2/.

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