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Broadcom Posts Better-Than-Expected Earnings, Revenue Guidance

Broadcom topped analysts earnings and revenue estimates, as well as those for fiscal third quarter revenue guidance.
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Broadcom Inc.  (AVGO) - Get Report reported fiscal second quarter results above analyst estimates on Thursday. 

The San Jose, Calif.-based chipmaker posted earnings for the quarter ended May 2 of $6.62 per share on revenue of $6.6 billion. Analysts were expecting the company to report earnings of $6.43 per share on revenue of $6.5 billion. 

"Due to the strength in demand for semiconductors across our multiple end markets, we delivered a 20% year-over-year increase in semiconductor revenue," said CEO Hock Tan.

Read More: Broadcom Analysts Mostly Bullish Following Q1 Earnings 

The company also issued fiscal third quarter revenue guidance of $6.75 billion, a 16% anticipated increase over the year-ago period. Analysts are expecting revenue of $6.6 billion, according to FactSet. 

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"Our third quarter outlook projects this year-over-year growth to sustain, as we continue to see strong demand from service providers and hypercloud," Tan said.

Broadcom shares were flat after hours at $464.85. Shares are up 6% year to date, versus an increase of 11.6% for the S&P 500.

The company reported a 15% year-over-year increase in total revenue and its operating profit increased by 25% in the second quarter. 

The company's board also approved a quarterly cash dividend of $3.60 per share payable June 30 to shareholders of record as of June 22. 

Broadcom shares were pressured about a month ago following a media report that Amazon  (AMZN) - Get Report is working on its own chips to power its networks, a move that reduces its dependence on Broadcom. 

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