Broadcom shares are ratcheting higher in late trading Thursday after the chip and software company posted better-than-expected results for its fiscal fourth quarter ended Oct. 31, provided strong January-quarter guidance, raised its dividend and announced a new stock-repurchase program.
For the quarter, Broadcom (ticker: AVGO) posted revenue of $7.41 billion, up 15%, and slightly ahead of the Wall Street analyst consensus forecast at $7.36 billion. Non-GAAP profits were $7.81 a share, edging consensus of $7.74 a share. Under generally accepted accounting principles, the company earned $4.45 a share.
The company said revenue from its semiconductor business was $5.6 billion, up 17% from the year-ago period. Software revenue was $1.8 billion, up 8%.
For the January quarter, Broadcom sees revenue of $7.6 billion, up 14%, and well ahead of the old Street consensus forecast of $7.3 billion.
The company said it had record adjusted Ebitda, or earnings before interest, taxes, depreciation and amortization, margins of 60%–and a projected January-quarter adjusted Ebitda margin of 61.5%.
Broadcom also boosted its quarterly dividend to $4.10 a share, up 14% from $3.60 previously. And the company announced a new $10 billion stock -repurchase program.
“Broadcom concluded the year with record fourth-quarter results driven by a rebound in enterprise, and continued strength from cloud and service provider demand. Our infrastructure software growth continues to be steady with our focus on strategic customers,” CEO Hock Tan said in a statement. “With the strength and breadth of our IP portfolio, we continue to be able to uniquely deliver leading edge, best-in-class semiconductor solutions, and extend our leadership in our franchise markets.”
In late trading, Broadcom shares were up 6.6%, to $621.81.
Write to Eric J. Savitz at [email protected]
