Broadcom Earnings: Here’s Why Investors Don’t Like These Results
Broadcom Corp. (NASDAQ:BRCM) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 3.93%.
Broadcom Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 2.78% to $0.70 in the quarter versus EPS of $0.72 in the year-earlier quarter.
Revenue: Rose 6.04% to $2.09 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Broadcom Corp. reported adjusted EPS income of $0.70 per share. By that measure, the company beat the mean analyst estimate of $0.68. It missed the average revenue estimate of $2.1 billion.
Quoting Management: “Broadcom delivered solid revenue and gross margins in Q2 with tightly managed sequential growth in operating expenses. This combination of financial discipline and in-line revenue enabled us to deliver non-GAAP earnings per share ahead of First Call consensus,” said Scott McGregor, Broadcom’s President and Chief Executive Officer. “Looking forward, we see continued growth driven by our industry leading portfolio of wired and wireless communication platforms.”
Key Stats (on next page)…