Broadcom's second-quarter results beat expectations! Announces 1-10 stock spin-off plan
Broadcom's performance in the second quarter was better than market expectations, with financial reports showing that its revenue and earnings per share were higher than analysts' expectations.
Broadcom's performance in the second quarter was better than market expectations, with financial reports showing that its revenue and earnings per share were higher than analysts' expectations. In addition, Botong also announced a stock split plan of 10 shares per share, demonstrating the management's confidence in the company's future development.
Broadcom has benefited from the rise of artificial intelligence, especially with strong sales of its AI products, and has further enhanced revenue and market expectations through the acquisition of VMware. Overall, Broadcom's performance and market strategy demonstrate strong growth potential and stable financial condition.
Financial Performance
- The adjusted earnings per share were $10.96, slightly higher than the expected $10.84.
- The revenue reached $12.49 billion, higher than the expected $12.03 billion.
- The company expects sales for the fiscal year 2024 to be approximately $51 billion, higher than its previous forecast and exceeding the market consensus of $50.42 billion.
Stock split
- Broadcom announced a plan to split one share into ten shares, and trading will begin on July 15th based on the split stocks.
- Affected by strong performance and news of a stock split plan, Broadcom's post market stock price rose by over 14.5% to $1,713.37 per share.
Profitability
- The net profit of Broadcom for this quarter was 2.12 billion US dollars, with earnings per share of 4.42 US dollars. As a comparison, the same period last year saw a decrease of $3.48 billion and $8.15 per share.
- The overall profit increased by 43% year-on-year, and excluding VMware, the annual growth rate is 12%.
AI Products
- Sales of AI products contributed $3.1 billion in the quarter.
- Broadcom partners with Google to design AI chip TPU for it.
- Broadcom CEO Hock Tan said on the earnings call that the company received an order for the next generation of custom AI accelerators.
VMware Contributions
- VMware's Sales Growth Boosts Revenue Growth and Full-Year Forecast.
- Last year Broadcom acquired VMware for $69 billion, significantly enhancing Broadcom's market competitiveness.
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