Broadcom stock jumps after Q4 results crush estimates
December 6, 2018
A further strong growth in demand across all the main business segments lifted Broadcom’s (AVGO) fourth-quarter earnings and revenues. Shares of the chipmaker gained about 7% during the extended session Thursday after it published the better than expected results.
Earnings, excluding one-off items, rose to .85 per share in the fourth quarter from .59 share a year earlier, exceeding market expectations. Unadjusted profit was .12 billion or .64 per share, lower than .56 billion or .25 per share in the year-ago quarter.
Driving the bottom line growth, revenues moved up 12% annually to .44 billion in the three-month period, beating estimates. The Networking, Enterprise Storage, Wireless and Industrial Products segments witnessed robust demand.
During the quarter, the management repurchased 6.4 million shares for about .53 billion and revised up the quarterly dividend for fiscal 2019 by 51% to .65 per share.
“Looking forward to fiscal year 2019, we expect another year of double digit revenue growth. Sustained demand within our semiconductor segment will be augmented by the newly acquired mainframe and enterprise software businesses to our infrastructure software segment,” said CEO Hock Tan.
Broadcom (NASDAQ: AVGO) Q4 2018 Earnings Call