semiconductor manufacturer Broadcom (AVGO) on Thursday reported earnings and revenue that beat Wall Street’s targets for its fiscal fourth quarter, despite slowing smartphone sales. Management’s revenue outlook for AVGO stock depends on analyst estimates.
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Broadcom’s earnings for the quarter ended October came in at $10.45 a share on an adjusted basis, up 34% from a year earlier. Revenue grew 21% to $8.93 billion in the quarter.
Analysts polled by FactSet expected Broadcom earnings of $10.29 a share on revenue of $8.9 billion. A year earlier, the company was headquartered in San Jose, Calif. earned $7.81 per share on sales of $7.41 billion.
For the current quarter ending January 30, Broadcom predicts revenue of $8.9 billion. Analysts expected revenue of $8.78 billion for the first fiscal quarter.
AVGO stock: Fall 2022 smartphone shipments
above stock market today, AVGO stock jumped 2% to nearly 542 in extended trading. Broadcom stock is down 21% through 2022 amid a bear market.
Broadcom makes wireless chips for smartphones, such as Apple (AAPL) Iphone. The Covid-related factory lockdown in China has slowed iPhone production.
Market research firm IDC forecasts that smartphone sales will fall 9.1% in 2022 to 1.24 billion units. It projects 2.8% growth in 2023.
Broadcom also manufactures semiconductors for broadband communications, networking, storage and industrial applications.
Additionally, Broadcom has a growing business in infrastructure software for mainframes, data centers, and cybersecurity.
VMware deal to expand software business
In May, Broadcom announced a purchase agreement VMware (VMW) for $61 billion in cash and stock. VMware provides cloud, infrastructure, network, security, and digital workspace management.
VMW reported Q10 earnings and revenue below expectations. Broadcom’s 2023 financial outlook does not include VMware. The acquisition is expected to close in early 2023.
Based on Check IBD StocksAVGO shares hold a Overall rating out of 87 out of 99 best possible.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless networks, artificial intelligence, cybersecurity, and cloud computing.
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