Broadcom Inc (NASDAQ: AVGO), on Thursday, reported market-beating outcomes for its fiscal first quarter and issued upbeat future steering. Shares are nonetheless boring in prolonged hours.
Professional shares her view on Broadcom inventory
For its present quarter, the semiconductor behemoth now forecasts about $8.70 billion in income. That’s nicely above $8.58 billion that analysts had anticipated.
Broadcom shunned providing steering for the total yr. Nonetheless, on CNBC’s “Closing Bell”, Hightower’s Stephanie Hyperlink stated:
Not solely do I like their combine when it comes to their semiconductor income at 80% of complete income, in addition they have a software program part as nicely which is 20%. I feel you’ll see higher recurring income inside software program over time.
Her bullish view is in step with Wall Avenue that additionally at present has a consensus “purchase” score on Broadcom inventory.
Broadcom’s first-quarter earnings snapshot
Earned $3.77 billion versus the year-ago $2.47 billion
Per-share earnings additionally climbed from $5.59 to $8.80
Gross sales jumped practically 16% year-on-year to $8.91 billion
Adjusted EPS printed at $10.33 as per the press launch
Consensus was $10.17 a share on $8.9 billion in income
Different notable figures within the earnings print
Different notable figures within the earnings report embrace $7.11 billion in chip gross sales (higher than anticipated) and $1.81 billion in software program gross sales (decrease than anticipated). Hyperlink added:
They’ve $31 billion in backlog, inventory has massively lagged, trades at 14 instances, there’s a 3.0% yield and so they’re producing $16 billion in FCF a yr. They elevated dividend final quarter, shopping for again inventory, so I like Broadcom inventory.
For the yr, this semiconductor inventory is up 8.0% at writing.