Broadcom Inc (NASDAQ: AVGO), on Thursday, reported market-beating results for its fiscal first quarter and issued upbeat future guidance. Shares are still dull in extended hours.
Pro shares her view on Broadcom stock
For its current quarter, the semiconductor behemoth now forecasts about $8.70 billion in revenue. That’s well above $8.58 billion that analysts had anticipated.
Broadcom refrained from offering guidance for the full year. Still, on CNBC’s “Closing Bell”, Hightower’s Stephanie Link said:
Not only do I like their mix in terms of their semiconductor revenue at 80% of total revenue, they also have a software component as well which is 20%. I think you’ll see better recurring revenue within software over time.
Her bullish view is in line with Wall Street that also currently has a consensus “buy” rating on Broadcom stock.
Broadcom’s first-quarter earnings snapshot
Earned $3.77 billion versus the year-ago $2.47 billion
Per-share earnings also climbed from $5.59 to $8.80
Sales jumped nearly 16% year-on-year to $8.91 billion
Adjusted EPS printed at $10.33 as per the press release
Consensus was $10.17 a share on $8.9 billion in revenue
Other notable figures in the earnings print
Other notable figures in the earnings report include $7.11 billion in chip sales (better than expected) and $1.81 billion in software sales (lower than expected). Link added:
They have $31 billion in backlog, stock has massively lagged, trades at 14 times, there’s a 3.0% yield and they’re generating $16 billion in FCF a year. They increased dividend last quarter, buying back stock, so I like Broadcom stock.
For the year, this semiconductor stock is up 8.0% at writing.
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