Broadcom posted earnings for the second fiscal quarter on Wednesday that beat analyst estimates. It also announced a 10-1 stock split, set to begin trading on a split-adjusted basis on July 15.
The stock rose about 10% in extended trading.
Here’s how the company did versus LSEG consensus estimates for the quarter ended in May:
Earnings per share: $10.96 adjusted vs. $10.84 expected
Revenue: $12.49 billion vs. $12.03 billion expected
The chipmaker expects about $51 billion in sales during its fiscal 2024 year, an increase over the company’s previous forecast, and slightly higher than consensus expectations of $50.42 billion.
Broadcom reported $2.12 billion in net income during the quarter, or $4.42 per share, versus $3.48 billion in net income, or $8.15 per share, in the year-ago period.
Broadcom is one of the chipmakers benefitting from the AI boom, because its devices can run the sorts of artificial intelligence applications that have enamored the tech industry. Broadcom said $3.1 billion in sales during the quarter could be attributed to revenue from AI products. For example, Broadcom works withGoogle, which designs its own AI chip called a TPU.
The company also said revenue from VMware, an enterprise software company it acquired for $69 billion late last year, also contributed to its sales growth and forecast for the rest of the year.
The company’s overall revenue was up 43% on an annual basis during the quarter. Without VMware sales, it would have been up 12% on a year-over-year basis, Broadcom said.
