Broadcom Inc. shares declined in the extended session Thursday after the company’s chip sales came in just under Wall Street estimates while software sales topped them.
Broadcom shares AVGO,
The company reported fiscal first-quarter net income of $1.3 billion, or $3.05 a share, compared with $311 million, or 74 cents a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation and other items, were $6.61 a share, compared with $5.25 a share in the year-ago quarter.
Revenue rose to $6.66 billion from $5.86 billion in the year-ago quarter. Analysts surveyed by FactSet had expected earnings of $6.56 a share on revenue of $6.62 billion, based on Broadcom’s forecast revenue of about $6.6 billion
“We executed well during our first fiscal quarter, driving 14% organic growth year on year,” said Hock Tan, Broadcom president and chief executive, in a statement. “This growth reflects the critical role our technology franchises play in this environment of accelerated digital transformation.”
The company reported a 74% gain in chip sales to $4.91 billion from the year-ago period, and a 26% rise in infrastructure software sales to $1.75 billion.
Analysts had forecast chip sales of $4.92 billion and infrastructure software sales of $1.67 billion.
Broadcom forecast revenue of about $6.5 billion for the fiscal second quarter, while analysts had estimated revenue of $6.33 billion.
Over the past 12 months, shares of Broadcom have gained 55%. In comparison, the S&P 500 index SPX,
