Broadcom (NASDAQ:AVGO) earnings for fiscal first quarter of 2020 have AVGO stock taking a beating after-hours Thursday. This is due to its adjusted earnings per share (EPS) of $5.25 missing Wall Street’s estimate of $5.33. The semiconductor company’s revenue of $5.86 billion also doesn’t reach analysts’ estimates of $6 billion.
The following are some additional details to note from the most recent Broadcom earnings report.
- Adjusted per-share earnings are down 5.41% from $5.55 during the fiscal first quarter of 2019.
- Revenue for the quarter comes in 1.21% higher than the $5.79 billion reported during the same time last year.
- Operating income of $714 million is a 32% drop year-over-year from $1.05 billion.
- The Broadcom earnings report also has it bringing in a net income of $385 million.
- This is 54.55% drop compared to its net income of $847 million from the same period of the year prior.
Hock Tan, president and CEO of Broadcom, said this about the AVGO stock earnings report:
“The fundamental semiconductor backdrop has been improving, and we did not see any material impact on our businesses due to COVID-19 in our first quarter. However, visibility in our global markets is lacking and demand uncertainty is intensifying. As a result, we believe it prudent to withdraw our annual guidance until visibility returns to pre COVID-19 levels.”
Despite the annual guidance withdrawal, the Broadcom earnings report does include its fiscal Q2 2020 outlook. It expects revenue to come in around $5.7 billion with a plus or minus of $150 million. Wall Street’s estimate is for revenue of $5.94 billion during the period.
AVGO stock ending the trading day 11.05% lower, and was down 9.3% after markets closed Thursday.
As of this writing, William White did not hold a position in any of the aforementioned securities.