Broadcom has reported its financial results for the first quarter of fiscal year 2023, which ended on January 29, 2023. The company’s net revenue for the quarter was $8.915 billion, representing a 16% increase over the same period last year, and a slight decrease from the previous quarter. Meanwhile, net profit increased by 53% year-on-year to $3.774 billion, exceeding analyst expectations.
Strong Performance Driven By Semiconductor Solutions Segment
Broadcom's semiconductor solutions segment was the primary driver of growth, accounting for 76% of the company’s first-quarter revenue. Revenue for this segment was $7.107 billion, representing a 21% increase compared to the same period last year. In contrast, the infrastructure software sector, which accounted for 24% of the company’s revenue, saw a decline of 1% year-on-year to $1.808 billion.
Adjusted Earnings Per Share Exceed Expectations
Excluding certain one-time items not in accordance with US GAAP, Broadcom’s adjusted net profit in the first quarter was $4.483 billion, with adjusted diluted earnings per share of $10.33. This exceeded analyst expectations, with 21 analysts forecasting first-quarter adjusted earnings per share of $10.1 on average. Broadcom’s adjusted net profit for the same period last year was $3.741 billion, with adjusted diluted earnings per share of $8.39.
Gross Profit, Operating Expenses, and Profit All Increase
Broadcom's gross profit for the quarter was $6.004 billion, compared to $5.049 billion in the same period last year and $5.926 billion in the previous quarter. Excluding certain one-time items, adjusted gross profit was $6.578 billion, up from $5.821 billion in the same period last year.
Total operating expenses for the quarter were $1.901 billion, slightly lower than the $1.941 billion reported for the same period last year. R&D expenditure for the quarter was $1.195 billion, while sales, general affairs, and administrative expenses were $348 million. Amortization of intangible assets related to mergers and acquisitions was $348 million, while restructuring, impairment, and disposal charges were $10 million.
Broadcom's operating profit for the first quarter was $4.103 billion, compared to $3.108 billion in the same period last year and $3.986 billion in the previous quarter. Adjusted operating profit for the quarter was $5.430 billion, up from $4.656 billion in the same period last year.
Positive Outlook For Fiscal Second Quarter
Broadcom’s outlook for fiscal second-quarter revenue in 2024 exceeded expectations, driving its after-hours stock price to rise slightly. The company anticipates revenue to be in the range of $9.4 billion to $9.8 billion, higher than the $9.38 billion expected by analysts. Broadcom CEO Hock Tan said the company expects to benefit from strong demand for its products, particularly in the 5G, cloud, and data center markets.
0 Comments