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Earnings Results: Broadcom earnings, outlook surpass Wall Street expectations

Broadcom Inc. shares were muted in the extended session Thursday after the chip and software company’s results and outlook surpassed the Wall Street consensus.

Broadcom
AVGO,
-1.89%

sharestraded between a 1% gain and a 1% loss after hours, following a 1.9% decline in the regular session to close at $464.80.

The company reported fiscal second-quarter net income of $1.42 billion, or $3.30 a share, compared with $488 million, or $1.17 a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation and other items, were $6.62 a share, compared with $5.14 a share in the year-ago quarter.

Revenue rose to $6.61 billion from $5.74 billion in the year-ago quarter. Analysts surveyed by FactSet had expected earnings of $6.43 a share on revenue of $6.51 billion, based on Broadcom’s forecast revenue of about $6.5 billion

The company reported a 20% gain in chip sales to $4.82 billion from the year-ago period, and a 4% rise in infrastructure software sales to $1.79 billion.

Analysts had forecast chip sales of $4.71 billion and infrastructure software sales of $1.78 billion.

“Our third quarter outlook projects this year-over-year growth to sustain, as we continue to see strong demand from service providers and hypercloud,” said Hock Tan, Broadcom president and chief executive, in a statement.

Broadcom forecast revenue of about $6.75 billion for the fiscal third quarter, while analysts had estimated revenue of $6.59 billion.

Over the past 12 months, shares of Broadcom have gained 50%. In comparison, the S&P 500 index 
SPX,
-0.36%

has advanced 34%, the tech-heavy Nasdaq Composite Index 
COMP,
-1.03%

 has risen 41%, and the PHLX Semiconductor Index 
HACK,
-1.10%

has surged 62% over that time.

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