VMware acquisition will came with more debt and share dilution
AVGO $Broadcom(AVGO)$ earnings today
VMware $VMware(VMW)$ acquisition will add to Infrastructure Software
Revenue Infrastructure Software 1Q last year
AVGO $1.8 B
VMware $3.7 B
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The acquisition came with more debt and share dilution
Will be interesting to see the weight of
1 Interest expense
~$400 M last 1Q / $1.6 B last year
2. Debt was $37.6 B at the end of FY24 (October)
3. Shares will jump from from 427 to 468 M (Acquisition was shares and cash)
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The share count increase will impact total dividends paid
Dividend/share increased 14% (announced 4Q)
With total shares increasing 10%
Total dividends paid will be ~25% incremental
FCF improvement definitely needed
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VMW acquisition items:
Interest expense $926 M vs $405 M a year ago
Long term Debt now $73.5 B (up from $37.6 B last Q )
$1.6 B in SBC (was $0.4 B a year ago)
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AVGO 1Q maintains FY guidance
1Q YoY
Revenue
Semiconductors +4%
Infrastructure software +153%
Net Income -65% (Restructuring + R&D)
Dil. EPS -68% (Adj +6.3%)
OCF +19%
FCF +19%
Maintains FY24 revenue guidance of approximately $50.0 billion
https://twitter.com/DividendWave/status/1765798755142394354
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