Broadcom Earnings: AVGO Stock Dips 1% Despite Q2 Beats

Broadcom (NASDAQ:AVGO) earnings for the company’s fiscal second quarter of 2020 have AVGO stock down after markets closed on Thursday. That’s despite its adjusted earnings per share of $5.14 matching Wall Street’s estimate. Its revenue of $5.74 billion also comes in above analysts’ estimates of $5.69 billion.

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Here are some additional highlights from the most recent Broadcom earnings report.

  • Adjusted per-share earnings are down 1.3% from $5.21 during the fiscal second quarter of 2019.
  • Revenue is sitting 4% higher than the $5.52 billion reported in the same period of the year prior.
  • Operating income of $766 million is a 21% decrease year-over-year from $970 million.
  • The Broadcom earnings report also has it bringing in a net income of $563 million.
  • That’s an 18.5% decline compared to its net income of $691 million from the same time last year.

Hock Tan, president and CEO of Broadcom, said this about the fiscal Q2 earnings.

“Second quarter results were in-line with our expectations, and saw limited impact from the effects of COVID-19. Looking ahead, our third quarter guidance for semiconductors reflects a surge in demand from cloud, telecom and enterprise customers, offset by supply chain constraints and an expected substantial reset in wireless.”

Broadcom also includes an outlook for fiscal Q3 2020 in its earnings report. The company is expecting revenue of $5.75 billion with a plus or minus of $150 million. That has the midpoint below Wall Street’s revenue estimate of $5.79 billion for the quarter.

AVGO stock was down 1% after-hours Thursday.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2020/06/broadcom-earnings-drop-avgo-stock/.

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