Broadcom (AVGO) — Buoyed by a wave of positive sales and earnings news, higher dividends, the unveiling of a new share buyback program and the company’s growth prospects on the market, shares of Broadcom Inc. rose on Friday. Hyper-Cloud Front.
Broadcom stock rose more than 7% in pre-market trading after the chip and software maker reported better-than-expected fourth-quarter financial results, provided strong guidance for the January quarter and announced a new share buyback, in addition to its own Dividend also increased. , Program.
For the quarter, Broadcom reported revenue of $7.41 billion, up 15%, and slightly above the Wall Street analyst consensus forecast of $7.36 billion. Non-GAAP earnings were $7.81 per share, well above the consensus forecast of $7.74 per share.
The company said revenue from its semiconductor business was $5.6 billion, up 17% over the previous year. Software revenue reached $1.8 billion, up 8%.
Behind all the good news: a so-called business spending boom, where companies are investing in both hardware and software to develop and strengthen their cloud-based systems that support things like virtual reality and technology. Artificial Intelligence – Broadcom Group CEO Hock Tan has been nicknamed the “people of the hyper-cloud”.
“We have a backlog, and they keep accumulating,” Hawke told analysts on a conference call, following the results in response to a question about whether the company’s networking activities will continue to grow along with growth. as strong as it was.
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“And you’re right, the hyper-cloud guys, like you’d ask me six months ago, I can’t believe they’re going to spend the level at 22 right now, but they look like that,” said Hawke, Saying that it is seeing growth not only in switching and routing, but also in “offloading computing applications”: virtualization, orchestration and managed services. by AI.
“So as I said, we see many, many levels, all headed in the right direction for fiscal year ’22. And it’s quite possible that what we’re seeing in the first quarter today will be sometime in the future.” Too much exercise 22.”
For the January quarter, Broadcom forecast revenue of $7.6 billion, up 14%, and well above Consensus Street’s current forecast of $7.3 billion.
Broadcom also raised its quarterly dividend to $4.10 per share, up 14% from $3.60 per share. And the company announced a new $10 billion share buyback program.
Shares of Broadcom rose 7.04% to $624.50 in pre-market trading on the previous check. Since the start of the year, the stock is up 37.2%.
