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March 5, 2021, 7:43 a.m. EST

Broadcom chip sales slightly miss Street view, while software revenue beats

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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 +0.92% 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 -0.87% has advanced 20%, the tech-heavy Nasdaq Composite Index /zigman2/quotes/210598365/realtime COMP -0.04% has risen 41%, and the PHLX Semiconductor Index /zigman2/quotes/210598361/realtime SOX +0.29% has rallied 58% over that time.

/zigman2/quotes/200646538/composite
US : U.S.: Nasdaq
$ 440.13
+4.03 +0.92%
Volume: 1.13M
May 11, 2021 1:51p
P/E Ratio
51.02
Dividend Yield
3.28%
Market Cap
$178.06 billion
Rev. per Employee
$1.14M
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/zigman2/quotes/210599714/realtime
US : S&P US
4,152.10
-36.33 -0.87%
Volume: 1.52B
May 11, 2021 1:52p
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/zigman2/quotes/210598365/realtime
US : Nasdaq
13,396.07
-5.79 -0.04%
Volume: 2.90M
May 11, 2021 1:52p
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/zigman2/quotes/210598361/realtime
US : Nasdaq
2,975.82
+8.71 +0.29%
Volume: 143,312
May 11, 2021 1:52p
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