Broadcom's 2Q Profit, Revenue Beats Wall Street Targets Amid Pandemic
June 04 2020 - 4:56PM
Dow Jones News
By Maria Armental
Chip maker Broadcom Inc. reported second-quarter results on
Thursday. Here's what you need to know:
PROFIT: Net income fell to $563 million, or $1.17 a share, from
$691 million, or $1.64 a share, a year earlier. On an adjusted
basis, profit fell to $5.14 a share from $5.21 a share, a year
earlier. Analysts surveyed by FactSet expected profit to fall to
about 93 cents a share, or $5.14 a share on an adjusted basis.
REVENUE: Revenue rose to $5.74 billion from $5.52 billion a year
earlier, driven by a 21% increase in infrastructure software
revenue that offset a 2% decline from its core semiconductor
solutions business. Analysts expected about $5.69 billion, roughly
in line with Broadcom's March projection.
PANDEMIC: "Second quarter results were in-line with our
expectations, and saw limited impact from the effects of COVID-19,"
Chief Executive Hock Tan said in a statement. "Looking ahead, our
third quarter guidance for semiconductors reflects a surge in
demand from cloud, telecom and enterprise customers, offset by
supply chain constraints and an expected substantial reset in
wireless. We remain focused on investing in our diverse set of
mission critical semiconductor and software franchises, while
carefully managing our expenses in this uncertain environment."
OUTLOOK: This quarter, Broadcom expects about $5.75 billion in
revenue, compared with analysts' projected $5.79 billion.
FCF: Broadcom generated a record free cash flow of $3.07
billion. "Given our strong free cash flow generation, healthy
balance sheet and enhanced liquidity position, we remain committed
to maintaining our dividend while we navigate these unprecedented
times," Chief Financial Officer Tom Krause said in a statement.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
June 04, 2020 16:41 ET (20:41 GMT)
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