By Wallace Witkowski
Broadcom Inc. shares declined in the extended session Thursday after the company’s chip sales came in just under Wall Street estimates while software sales topped them.
Broadcom shares /zigman2/quotes/200646538/composite AVGO -0.08% slipped 2% after hours, following a 4.2% decline in the regular session to close at $443.59.
The company reported fiscal first-quarter net income of $1.3 billion, or $3.05 a share, compared with $311 million, or 74 cents a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation and other items, were $6.61 a share, compared with $5.25 a share in the year-ago quarter.
Revenue rose to $6.66 billion from $5.86 billion in the year-ago quarter. Analysts surveyed by FactSet had expected earnings of $6.56 a share on revenue of $6.62 billion, based on Broadcom’s forecast revenue of about $6.6 billion
“We executed well during our first fiscal quarter, driving 14% organic growth year on year,” said Hock Tan, Broadcom president and chief executive, in a statement. “This growth reflects the critical role our technology franchises play in this environment of accelerated digital transformation.”
The company reported a 74% gain in chip sales to $4.91 billion from the year-ago period, and a 26% rise in infrastructure software sales to $1.75 billion.
Analysts had forecast chip sales of $4.92 billion and infrastructure software sales of $1.67 billion.
Broadcom forecast revenue of about $6.5 billion for the fiscal second quarter, while analysts had estimated revenue of $6.33 billion.
Over the past 12 months, shares of Broadcom have gained 55%. In comparison, the S&P 500 index /zigman2/quotes/210599714/realtime SPX +0.77% has advanced 20%, the tech-heavy Nasdaq Composite Index /zigman2/quotes/210598365/realtime COMP +0.51% has risen 41%, and the PHLX Semiconductor Index /zigman2/quotes/210598361/realtime SOX -0.20% has rallied 58% over that time.
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