Broadcom Q1 results: ‘margins look really good’

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Broadcom Inc (NASDAQ: AVGO) stock is up 4.0% in extended trading on Thursday after the semiconductor company reported market-beating results for Q1 and gave solid future guidance.

Broadcom Q1 results

Net income stood at $2.47 billion that translates to $5.59 a share.In the year-ago period, net income was capped at $1.38 billion or $3.05 a share.Adjusted EPS printed at $8.39, as per the earnings press release.At $7.71 billion, revenue was up 16% on a year-over-year basis.FactSet consensus was for $8.13 of adjusted EPS on $7.61 billion in revenue.Chip sales jumped 20% in the recent quarter, ahead of the experts’ forecast.Infrastructure software sales were up 5.0%, slightly shy of Street expectations.

Broadcom future outlook

For the fiscal second quarter, Broadcom forecasts $7.9 billion in revenue versus analysts at $7.43 billion. On CNBC’s “Closing Bell”, Bernstein’s Stacy Rasgon said:

It was a really solid beat and raise. The quarter looks pretty good. Margins look really good. They did 75.5% gross margins and may even be guiding them up again, at least implicitly. They have enough dry powder on top the buyback programme to execute a deal if they find one.

Broadcom has a target of $10 billion in stock repurchase this year. $3.10 billion of that, the chipmaker revealed, has been executed already. Shares are still down over 10% for the year.

The post Broadcom Q1 results: ‘margins look really good’ appeared first on Invezz.

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