Free Post Earnings Research Report: Broadcom’s Quarterly Earnings Advanced 41.05%

LONDON, UK / ACCESSWIRE / April 20, 2018 / Active-Investors.com has just released a free earnings report on Broadcom Inc. (NASDAQ: AVGO). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=AVGO. On March 15, 2018, Broadcom reported financial results for the first quarter of 2018 ending February 04, 2018. The Company made a strong beginning to 2018 with its first quarter performance wherein it surpassed analysts' estimates for earnings as well as revenue. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Broadcom most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

Broadcom's total revenues reached $5.33 billion in Q1 FY18, reflecting an increase of 28.70% from $4.14 billion in Q1 FY17. Reported revenue number exceeded analysts' consensus estimates by $10 million.

Broadcom's total cost of products sold for the quarter ending February 04, 2018, was $2.7 billion, 26.24% higher than $2.14 billion reported in the quarter ending January 29, 2017. The Company's gross profit advanced 31.33% to $2.63 billion in Q1 FY18 from $2.00 billion in Q1 FY17. Broadcom's gross margin increased 0.99 percentage points to 49.33% in the reported quarter.

Broadcom incurred operating expenses of $1.69 billion in Q1 FY18, 12.71% higher than $1.5 billion in Q1 FY17. The Company's research and development (R&D) expenses advanced 14.48% to $925 million on a y-o-y basis, while selling, general, and administrative (SG&A) expenses increased 44.78% to $291 million on a y-o-y basis in Q1 FY18. Broadcom's operating profit jumped 86.36% to $943 million in the quarter under review from $506 million in the previous year's comparable quarter.

Broadcom's net income was $6.57 billion, or $14.62 per share, for Q1 FY18 which is an increase of 2505.56% from $252 million, or $0.57 per share, in Q1 FY17. Broadcom's reported results for Q1 FY18 included special items such as amortization of acquisition-related intangible assets, share-based compensation expense, restructuring, impairment and disposal charges, purchase accounting effect on inventory, and income tax benefits from the enactment of the US Tax Cuts and Jobs Act. The Company's non-GAAP net income, after excluding these special items, was $2.35 billion in Q1 FY18 compared to $1.63 billion in Q1 FY17, reflecting an increase of 44.13%. The non-GAAP net income per share also advanced 41.05% to $5.12 in the reported quarter from $3.63 in the previous year's same quarter; which was higher than analysts' consensus estimates by $0.08 per share.

Broadcom's Segment Details

During Q1 FY18, the Wired infrastructure segment's reported net revenues of $1.88 billion, a decrease of 10.03% from $2.08 billion in Q1 FY17.

The Wireless communications segment's net revenues were $2.21 billion in Q1 FY18, an increase of 88.09% from $1.18 billion in Q1 FY17.

The Enterprise storage segment reported net revenues of $991 million in Q1 FY18, an increase of40.17% from $707 million in Q1 FY17.

The Industrial & other segment's net revenues were $251 million for Q1 FY18, up 45.09% from $173 million in Q1 FY17.

Cash Matters

Broadcom had cash and cash equivalents of $7.08 billion as on February 04, 2018, 36.84% lower than $11.20 billion as on October 29, 2017. The Company had a long-term debt of $17.48 billion as on February 04, 2018, a slight increase of 0.25% from $17.43 billion as on October 29, 2017.

Broadcom's cash flow from operating activities was $1.69 billion in Q1 FY18, 24.54% higher than the $1.35 billion recorded in Q1 FY17. The Company spent $220 million on purchases of property, plant and equipment in the reported quarter compared to $325 million in the year ago corresponding quarter.

On December 29, 2017, Broadcom paid cash dividends of $1.75 per ordinary share, or $717 million in total. On the same date, the Partnership, of which the Company is the General Partner, paid holders of LP Units a corresponding distribution of $1.75 per LP Unit, totaling $38 million.

Outlook

For the second quarter of 2018, Broadcom expects its GAAP revenue to be in the range of $4.922 billion to $5.072 billion and GAAP gross margin to be in the 49% to 51%. The Company anticipates GAAP operating expenses of $1,375 million and diluted share count of 427 million in Q2 FY18.

On a non-GAAP basis, Broadcom expects revenue to be in the range of $4.925 billion to $5.075 billion and gross margin to be in the range of 65% to 67%. The Company anticipates non-GAAP operating expenses of $890 million and diluted share count of 461 million in Q2 FY18.

Broadcom's Board of Directors declared a quarterly interim cash dividend of $1.75 per ordinary share and a corresponding distribution of $1.75 per LP unit. The dividend and the distribution were paid on March 29, 2018, to shareholders or unitholders of record, at the close of business 5:00 p.m. Eastern Time on March 22, 2018.

Stock Performance Snapshot

April 19, 2018 - At Thursday's closing bell, Broadcom's stock dropped 2.70%, ending the trading session at $242.86.

Volume traded for the day: 4.96 million shares, which was above the 3-month average volume of 4.25 million shares.

Stock performance in the last month – up 0.21%; previous six-month period – up 0.10%; past twelve-month period – up 13.68%

After yesterday's close, Broadcom's market cap was at $99.57 billion.

Price to Earnings (P/E) ratio was at 55.28.

The stock has a dividend yield of 2.88%.

The stock is part of the Technology sector, categorized under the Semiconductor - Broad Line industry.

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