Broadcom Earnings Top Street Forecasts, AI Demand Seen Driving Revenue Gains
"Broadcom's second quarter results were driven by demand for next generation technologies from hyperscale, while enterprise and service providers continued to sustain," said CEO Hock Tan
Updated at 4:28 pm EDT
Broadcom (AVGO) - Get Free Report posted stronger-than-expected second quarter earnings Thursday, thanks in part to ongoing demand for its AI-focused, next generation chips, and said current quarter revenues would continue to expand.
Broadcom's adjusted earnings of $10.32 per share, 7.9% higher than last year, topped Street forecasts by around 24 cents, while revenues rose 7.8% to an analyst-beating $8.733 billion. Current quarter revenues, the group said, should come in at around $8.85 billion.
Semiconductor solutions revenues grew 9% from last year to $6.808 billion while its infrastructure software business saw sales rise 3% to $1.925 billion.
"Broadcom's second quarter results were driven by demand for next generation technologies from hyperscale, while enterprise and service providers continued to sustain," said CEO Hock Tan. "Our third quarter outlook projects year-over-year growth, reflecting continued leadership in networking as we support a measured ramp into large scale AI networks."
Broadcom shares were marked 1.56% lower in after-hours trading immediately following the earnings release to indicate a Friday opening bell price of $777.65 each.
"Consolidated revenue grew 8% year-over-year to $8.7 billion and adjusted EBITDA margin increased year-over-year to 65%," said CFO Kirsten Spears. "We generated $4.4 billion in free cash flow, and expect cash flows to remain strong for Q3."
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