Proactive Investors - Broadcom Corporation (NASDAQ:AVGO) has reported second-quarter revenue and earnings that beat exceptions as it benefited from demand for next-generation technologies, including artificial technologies (AI).
The company, which designs, develops and supplies semiconductor and infrastructure software solutions, grew sales by 7.8% to $8.73 billion for the quarter ended April 30, 2023, beating analysts’ expectations of $8.71 billion, while its adjusted EBITDA (underlying earnings) margin increased to 65% year-over-year.
Adjusted earnings per share for the quarter rose 14% to $10.32, beating the Zacks Consensus Estimate of $10.13 per share.
The company noted that it generated $4.4 billion in free cash flow and said it expected cash flows to remain strong for 3Q. It declared a $4.60 dividend per share.
"Broadcom's second-quarter results were driven by demand for next-generation technologies from hyperscale, while enterprise and service providers continued to sustain," the company’s president and CEO Hock Tan said in an earnings statement.
"Our third quarter outlook projects year-over-year growth, reflecting continued leadership in networking as we support a measured ramp into large-scale AI networks."
The company has guided for third-quarter revenue of about $8.85 billion, with adjusted EBITDA of around 65% of projected revenue.
Its shares were down 1.8% at $776 in Friday pre-market trade.