Broadcom Inc (NASDAQ: AVGO), on Thursday, reported market-beating results for its fiscal first quarter and issued upbeat future guidance. Shares are still dull in extended hours.
For its current quarter, the semiconductor behemoth now forecasts about $8.70 billion in revenue. That’s well above $8.58 billion that analysts had anticipated.
Broadcom refrained from offering guidance for the full year. Still, on CNBC’s “Closing Bell”, Hightower’s Stephanie Link said:
Not only do I like their mix in terms of their semiconductor revenue at 80% of total revenue, they also have a software component as well which is 20%. I think you’ll see better recurring revenue within software over time.
Her bullish view is in line with Wall Street that also currently has a consensus “buy” rating on Broadcom stock.
Earned $3.77 billion versus the year-ago $2.47 billion
Per-share earnings also climbed from $5.59 to $8.80
Sales jumped nearly 16% year-on-year to $8.91 billion
Adjusted EPS printed at $10.33 as per the press release
Consensus was $10.17 a share on $8.9 billion in revenue
Other notable figures in the earnings report include $7.11 billion in chip sales (better than expected) and $1.81 billion in software sales (lower than expected). Link added:
They have $31 billion in backlog, stock has massively lagged, trades at 14 times, there’s a 3.0% yield and they’re generating $16 billion in FCF a year. They increased dividend last quarter, buying back stock, so I like Broadcom stock.
For the year, this semiconductor stock is up 8.0% at writing.
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