The semiconductor company reported second quarter earnings after the bell Wednesday.
Broadcom released second-quarter earnings, narrowly beating analysts’ estimates, but the stock fell after hours.
The company posted:
Non-GAAP earnings of $2.44 a share, above the FactSet analyst consensus of $2.40
Revenue of $22.19 billion, compared with the Street’s $22.13 billion
AI semiconductor revenue of $10.8 billion, compared with the company’s $10.7 billion target
a quarter ago. The company’s guidance for the third quarter consisted of:
Revenue of $29.4 billion, versus analysts’ $28.25 billion
Adjusted EBITDA of $19.99 billion, compared with the Street’s $19.39 billion
Shares were down 4.8% in recent after-hours trading.
"Broadcom achieved record revenue, operating profit and free cash flow in Q2 driven by accelerating growth in AI semiconductor revenue and strong operating leverage," said Hock Tan, Broadcom President and CEO.
Prior to the earnings, Broadcom had surged nearly 100% in the last year. Most recently the semiconductor company caught a bid after Alphabet, which alone is responsible for 13% of Broadcom’s revenue, announced an $80 billion equity raise — proof the search giant can keep ponying up for the custom chip specialist as it executes its massive AI infrastructure plans.