Shares of Broadcom climbed 3% in premarket trading Friday after the chip maker reported record revenue in the fiscal first quarter and topped analysts’ exceptions.
Broadcom reported adjusted, non-GAAP net income of $3.74 billion, or $8.39 per share. Revenue jumped 16% year over year to $7.7 billion. Analysts polled by FactSet had forecast non-GAAP earnings of $8.23 a share and revenue of $7.6 billion.
“Broadcom’s record first quarter results were driven by strong enterprise demand, and continued investments in next generation technology by hyperscale and service providers,” CEO Hock Tan said in the company’s earnings release. “Our second quarter outlook projects year-over-year growth to accelerate.”
The company said its semiconductor solutions segment had revenue of $5.87 billion, while its infrastructure software segment clocked in at $1.83 billion. The firm also bought back $2.72 billion in stock during the quarter.
For the fiscal second quarter, which ends May 1, Broadcom expects revenue of about $7.9 billion, which was ahead of prior analyst expectations for $7.4 billion, according to FactSet.
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