Broadcom Inc. shares were muted in the extended session Thursday after the chip and software company’s results and outlook surpassed the Wall Street consensus.
sharestraded between a 1% gain and a 1% loss after hours, following a 1.9% decline in the regular session to close at $464.80.
The company reported fiscal second-quarter net income of $1.42 billion, or $3.30 a share, compared with $488 million, or $1.17 a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation and other items, were $6.62 a share, compared with $5.14 a share in the year-ago quarter.
Revenue rose to $6.61 billion from $5.74 billion in the year-ago quarter. Analysts surveyed by FactSet had expected earnings of $6.43 a share on revenue of $6.51 billion, based on Broadcom’s forecast revenue of about $6.5 billion
The company reported a 20% gain in chip sales to $4.82 billion from the year-ago period, and a 4% rise in infrastructure software sales to $1.79 billion.
Analysts had forecast chip sales of $4.71 billion and infrastructure software sales of $1.78 billion.
“Our third quarter outlook projects this year-over-year growth to sustain, as we continue to see strong demand from service providers and hypercloud,” said Hock Tan, Broadcom president and chief executive, in a statement.
Broadcom forecast revenue of about $6.75 billion for the fiscal third quarter, while analysts had estimated revenue of $6.59 billion.
Over the past 12 months, shares of Broadcom have gained 50%. In comparison, the S&P 500 index
has advanced 34%, the tech-heavy Nasdaq Composite Index
has risen 41%, and the PHLX Semiconductor Index
has surged 62% over that time.