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Broadcom The company reported fiscal second-quarter earnings on Wednesday that beat analysts' estimates. It also announced a 10-1 stock split, and trading on the revised split basis is scheduled to begin on July 15.
The stock rose about 10% in extended trading.
Here's how the company performed against LSEG's consensus estimates for the quarter ending in May:
Earnings per share: $10.96 adjusted vs. $10.84 expected Revenue: $12.49 billion vs. $12.03 billion expected
The chipmaker expects sales of about $51 billion during its 2024 fiscal year, an increase from the company's previous forecast, and slightly higher than the consensus forecast of $50.42 billion.
Broadcom reported $2.12 billion in net income during the quarter, or $4.42 per share, versus $3.48 billion in net income, or $8.15 per share, in the same period last year.
Broadcom is one of the chipmakers benefiting from the AI boom, because its hardware can run the types of AI applications that the tech industry has become fascinated with. Broadcom said $3.1 billion of sales during the quarter could be attributed to revenue from artificial intelligence products. For example, Broadcom works with… Googlewhich designs its own artificial intelligence chip called TPU.
The company also said revenue from VMware, an enterprise software company it acquired for $69 billion late last year, also contributed to its sales growth and outlook for the rest of the year.
The company's total revenue increased 43% year over year during the quarter. Without VMware, Broadcom said, sales would have risen 12% year over year.
