Broadcom’s first-quarter results and outlook exceeded expectations, and experts praised the company’s “stellar” performance.
Broadcom (NASDAQ:AVGO) reported its first-quarter results, with EPS of $10.33 exceeding the average expectation of $10.18. Revenue increased 16% year on year to $8.92 billion, exceeding the average forecast of $8.9 billion.
“Broadcom’s first-quarter result shows ongoing strength in infrastructure demand across all of our end markets,” said Hock Tan, Broadcom’s President and CEO. “Looking ahead, we are optimistic that our development will be fueled by continued supremacy in next-generation technologies across all of our main industries, as well as solid client relationships.”
The business anticipates revenue of $8.7 billion in the second quarter of 2023, which is higher than the consensus projection of $8.58 billion.
In addition, the business announced a quarterly dividend of $4.60 per share, or $18.4 annually, for a 3.1% annual yield.
Bernstein analysts, who increased their price estimate on AVGO stock to $700 per share, stressed Broadcom’s AI opportunity and added:
“AVGO’s total performance remains stellar, with more revenue consistency, significantly improved channel and client management, and cash generation and margins that remain unquestionably best in class, and the VMW transaction will add even more value if they can complete it.”
Analysts at Goldman Sachs also highlighted execution, which is particularly remarkable in an uncertain economic climate.
“Similar to previous quarters, Broadcom achieved robust year-over-year revenue growth in networking (+20% yoy) and server storage connectivity (+57% yoy) in FY1Q, led by increased AI spending and growth in next-gen solutions, especially among enterprise clients,” they wrote in a note.
