Broadcom Earnings Analysis

Broadcom's latest financial report analysis

Key financial data

• Earnings Per Share (EPS):

Actual EPS: $10.96

Expected EPS: $11.06

• Revenue:

Actual revenue: $12.487 billion

Expected revenue: $12.268 billion

Earnings highlights

1. Revenue growth: Broadcom achieved revenue of $12.487 billion in the second quarter of fiscal year 2024, exceeding market expectations of $12.268 billion. This indicates the company's strong performance in terms of market demand and business expansion.

2. Earnings per share (EPS): Although actual EPS was $10.96, slightly lower than the forecast of $11.06, the performance driver

• Market demand: Broadcom's revenue growth is mainly benefiting from strong market demand for semiconductor and infrastructure software solutions.

• Business Expansion: The company's business expansion in multiple areas, such as data centers, networking, and wireless communications, continues to drive revenue growth.

• Innovation and product development: Broadcom continuously invests in new technology and product development to maintain its competitive advantage in the market.

Dividend & Stock Split

Broadcom declared a dividend of $5.25 per share. Broadcom also announced a 10-1 forward stock split. Shareholders recorded as of July 11 will receive 9 shares for every 1 share held. The stock is expected to begin trading at an adjusted price on July 15.

Management comments

Broadcom management is optimistic about growth prospects over the next few quarters, despite some uncertainty in the global economic environment. The company plans to continue to increase investment in core markets and expand the range of its products and services to meet future market demands. Broadcom's second-quarter results were once again driven by AI demand and VMware. Our artificial intelligence product revenue reached a record $3.1 billion this quarter. Infrastructure software revenue is growing faster as more businesses use VMware software stacks to build their own private clouds

Prospects for the future

• Market Expectations: Broadcom expects revenue and profits to continue to grow steadily over the next few quarters as global demand for semiconductors and software solutions continues to grow.

• Business Strategy: The company will continue to focus on high-growth markets and innovative product development to strengthen its market position and achieve long-term growth.

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