Broadcom Q1 Results: Earnings Beat, Revenue Beat, Guides Below Estimates
Portfolio Pulse from Erica Kollmann
Broadcom, Inc. (NASDAQ:AVGO) reported Q1 earnings of $10.99 per share, surpassing the consensus estimate of $10.29, and sales of $11.96 billion, beating the $11.71 billion estimate. The company saw a 34.16% year-over-year sales increase and reported $4.693 billion in free cash flow. Broadcom's revenue growth is driven by its VMware acquisition and strong demand for networking products in AI data centers. Despite this, Broadcom's shares dropped 3.34% after-hours following the announcement of its fiscal year 2024 revenue guidance, which, at approximately $50 billion, slightly missed the $50.21 billion estimate.
March 07, 2024 | 9:44 pm
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Broadcom reported higher-than-expected Q1 earnings and sales, driven by VMware acquisition and AI product demand. However, shares fell 3.34% after-hours due to FY2024 revenue guidance slightly below estimates.
Broadcom's positive earnings and sales report typically would suggest a positive short-term impact on its stock price. However, the after-hours trading reaction indicates investor disappointment with the FY2024 revenue guidance, which missed analyst estimates slightly. This suggests a short-term negative impact on AVGO's stock price.
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