Broadcom beats Wall Street expectations

Broadcom Inc. (NASDAQ: AVGO) announced its latest financial results after the US market closed on Thursday.

The US tech giant achieved revenue of $11.961 billion in the first quarter of fiscal year 2024 (up by 34% year-over-year) vs. $11.759 billion estimate.

Earnings per share was reported at $10.99 (up by 6.38% year-over-year) vs. $10.368 per share expected.

The company announced a quarterly dividend of $5.25 a share.

Company overview

• Founded: 1961
• Headquarters: San Jose, California, United States
• Number of employees: 20,000 (2023)
• Industry: Semiconductor, computer software
• Key people: Henry Samueli (Chairman), Hock Tan (President and CEO)

CEO commentary

Hock Tan, CEO of Broadcom had this to say in a letter to investors: “We are pleased to have two strong drivers of revenue growth for Broadcom in the first quarter and fiscal year 2024. First, our acquisition of VMware is accelerating revenue growth in our infrastructure software segment, as customers deploy VMware Cloud Foundation. Second, strong demand for our networking products in AI data centers, as well as custom AI accelerators from hyperscalers, are driving growth in our semiconductor segment.”

“We reiterate our fiscal year 2024 guidance for consolidated revenue of $50 billion and adjusted EBITDA of $30 billion,” Tan looked at the year ahead.

Stock reaction

Shares ended Thursday’s session up by 4.22% before the results were announced, trading at $1,407.01 a share.

The stock dipped by around 3% in the after-hours trading.

Stock performance

• 5 day: +7.19%
• 1 month: +9.35%
• 3 months: +51.15%
• Year-to-date: +24.88%
• 1 year: +123.92%

Broadcom stock price targets

• Mizuho: $1,550
• Rosenblatt Securities: $1,500
• Cantor Fitzergald: $1,600
• Oppenheimer: $1,500
• Susquehanna: $1,550
• UBS Group: $1,480
• The Goldman Sachs Group: $1,325
• Citigroup: $1,100
• TD Cowen: $1,000
• Truist Financial: $1,015
• KeyCorp: $1,200
• Evercore ISI: $1,050
• Robert W. Baird: $1,000
• Deutsche Bank: $950
• Wells Fargo & Company: $900

Broadcom Inc. is the 11th largest company in the world with a market cap of $646.85 billion, according to CompaniesMarketCap.

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Sources: Broadcom Inc., TradingView, MarketWatch, MarketBeat, CompaniesMarketCap