Broadcom's Q4 Performance: Mixed Earnings, Dividend Hike, FY24 Guidance Exceeds Estimates
Portfolio Pulse from Ryan Gustafson
Broadcom Inc. (NASDAQ:AVGO) reported mixed Q4 results with earnings per share of $11.06, beating estimates by $0.08, but missed revenue expectations with $9.29 billion against an estimate of $9.41 billion. The company saw a year-over-year revenue growth of 8% to $35.8 billion. Cash reserves increased to $14.19 billion. Broadcom raised its quarterly dividend by 14% to $5.25 and provided FY24 revenue guidance of $50 billion, surpassing the $45.76 billion estimate. The stock fell 1.32% in after-hours trading.
December 07, 2023 | 9:48 pm
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Broadcom's mixed Q4 results with higher EPS and lower revenue than expected, increased dividend, and strong FY24 guidance may lead to short-term volatility.
The mixed earnings report with a beat on EPS but a miss on revenue typically leads to uncertain market reactions. However, the significant dividend increase and bullish FY24 guidance could offset negative sentiment. The after-hours stock price decline indicates investors may be focusing more on the revenue miss in the short term.
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