Broadcom shares took off in after-hours trading
Chipmaker Broadcom (AVGO) reported its fiscal 4Q17 (ended October 29) results on Wednesday, December 6. The company’s revenues for the quarter came in line with expectations, and it beat its earnings estimates.
Broadcom generated revenue of ~$4.84 billion in fiscal 4Q17, which was 8.5% higher than in fiscal 4Q16 and marginally above the analysts’ estimate of $4.82 billion. The chipmaker reported adjusted EPS (earnings per share) of $4.59 per share, which was 32% higher YoY (year-over-year). Wall Street had projected EPS of $4.51 per share.
Broadcom’s earnings were boosted by this
Broadcom also gave an upbeat guidance for its fiscal 1Q18. It expects to generate revenue in the range of $5.22 billion–$5.37 billion in fiscal 1Q18. The company’s shares rose 4.2% in after-hours trading on Wednesday, and the stock has surged 49.3% YTD (year-to-date).
The company said that its profits were boosted on the back of sales of its smartphone chips, which offset the slowing growth in its core wired-infrastructure unit. Broadcom’s revenues from its wired-infrastructure business, which represents 45% of total sales, grew 3% YoY in fiscal 4Q17, and its wireless communication business, which accounts for ~33% of total revenues, grew 33% YoY.
Meanwhile, Broadcom is hoping to convince Qualcomm (QCOM) investors to agree to a record $105-billion takeover bid.