Shares of Broadcom (AVGO) - Get Report fell after hours Thursday after the company reported fiscal first quarter results that missed estimates while also pulling its full year guidance due to the impact of the coronavirus outbreak.
The company did issue fiscal second quarter revenue guidance, however.
The San Jose-based company reported first quarter earnings of $5.25 per share on revenue of $5.85 billion. Analysts were expecting the company to report earnings of $5.33 per share on revenue of $6 billion.
Shares were falling 2.8% to $212.70 in after-hours trading on Thursday.
"The fundamental semiconductor backdrop has been improving, and we did not see any material impact on our businesses due to COVID-19 in our first quarter," said CEO Hock Tan in a statement. "However, visibility in our global markets is lacking and demand uncertainty is intensifying. As a result, we believe it prudent to withdraw our annual guidance until visibility returns to pre COVID-19 levels."
The company withdrew its prior annual guidance for fiscal 2020 and instead provided guidance for the second quarter in Thursday's release.
The company expects second quarter revenue between $5.55 billion and $5.85 million. Analysts are expecting the company to report revenue of $5.94 billion
Separately, the company approved a quarterly cash dividend of $3.25 per share payable March 31 to shareholders of record on March 23.
Broadcom shares fell 11% in regular hours trading Thursday, taking the stock down about 30% for the year heading into earnings.
"We ended the first quarter with over of cash on hand and our cash flow outlook remains healthy. As a result, we are well positioned to continue to support our dividends to stockholders despite the challenging market backdrop," said Broadcom CFO Tom Krause.