Broadcom Inc. shares fell in Thursday’s expanded session after the company’s chip sales fell just short of Wall Street estimates while software sales beat them.
Broadcom stocks
AVGO, -4.20%
slipped 2% after hours after the regular session fell 4.2% to close at $ 443.59.
The company reported net income of $ 1.3 billion, or $ 3.05 per share, for the first quarter, compared to $ 311 million, or 74 cents per share, for the same period last year. Adjusted earnings excluding share-based compensation and other items were $ 6.61 per share, compared to $ 5.25 per share for the year-ago quarter.
Revenue rose to $ 6.66 billion from $ 5.86 billion in the year-ago quarter. Analysts polled by FactSet had expected earnings of $ 6.56 per share of revenue of $ 6.62 billion, based on Broadcom’s projected revenue of $ 6.6 billion
“We performed well in our first fiscal quarter and achieved organic growth of 14% year over year,” said Hock Tan, President and Chief Executive of Broadcom, in a statement. “This growth reflects the critical role our technology franchises are playing in this environment of accelerated digital transformation.”
The company saw chip sales increase 74% to $ 4.91 billion year over year and infrastructure software sales increase 26% to $ 1.75 billion.
Analysts had forecast chip sales of 4.92 billion US dollars and infrastructure software sales of 1.67 billion US dollars.
Broadcom forecast sales of around 6.5 billion US dollars for the second quarter of the fiscal year, while analysts had estimated sales of 6.33 billion US dollars.
In the past 12 months, Broadcom’s shares are up 55%. In comparison, the S&P 500 Index
SPX -1.34%
has increased the tech-heavy Nasdaq Composite Index by 20%
COMP, -2.11%
is up 41%, and the PHLX Semiconductor Index
SOX, -4.84%
has increased by 58% during this time.
