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Broadcom Earnings: AVGO Stock Sinks Despite Q2 Earnings Beat

Broadcom (NASDAQ:) 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 , 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.

The post appeared first on InvestorPlace.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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