Broadcom’s stock rises as Q4 earnings exceed expectations

Share post:

Broadcom, a global technology leader in the design, development, and supply of semiconductor and infrastructure software solutions, provided Wall Street analysts with quarterly earnings and an outlook that exceeded consensus estimates.

The company also increased its dividend, and recommitted to share buybacks, but analysts continued to ask for more from the chip and software company.

Shares rose 3% in extended trading after falling more than 20% this year. For the fourth quarter, cash from operations of $4,583 million less capital expenditures of $122 million resulted in $4,461 million of free cash flow, or 50% of revenue. The quarterly common stock dividend increased by 12% from the previous quarter to $4.60. Revenue for the fourth quarter was $8,930 million, up 21% from the previous year.

For the fourth quarter, GAAP net income was $3,359 million, while Adjusted EBITDA was $5,722 million. GAAP diluted EPS for the fourth quarter was $7.83; non-GAAP diluted EPS for the fourth quarter was $10.45. Revenue guidance for the first quarter is $8.9 billion, a 16 percent increase over the prior year period. Adjusted EBITDA guidance for the first quarter of approximately 63 percent of projected revenue. The company earned $10.45 per share on an adjusted basis, exceeding estimates of $10.28.

The surge was caused by an increase in server and data center demand.

The sources for this piece include an article in Reuters.

Featured Tech Jobs



Related articles

Apple’s App Store ecosystem generate $1.1 Trillion in developer billings and sales in 2022

According to a study done by Analysis Group, the whole ecosystem of Apple's App Store earned $1.1 trillion...

Dell beats profit estimates in Q1

After a drop in demand, Dell exceeded earnings estimates in the first quarter, indicating a brighter future for...

Twitter’s algorithm shifts towards anger and hostility, study finds

New research by computer scientists from Cornell University and the University of California, Berkeley (UC Berkeley) uncovers major...

Fidelity reports plummeting Twitter value under Musk

According to investment company Fidelity, Twitter's valuation has dropped for the third time since Elon Musk took control...

Become a member

New, Relevant Tech Stories. Our article selection is done by industry professionals. Our writers summarize them to give you the key takeaways