Broadcom Q1 adjusted EPS beats estimates

Overview

• Semiconductor solutions provider's fiscal Q1 revenue rose 29%, slightly beating analyst expectations

• Adjusted EPS for fiscal Q1 beat analyst expectations

• Company announced new $10 bln share repurchase program

Outlook

• Broadcom expects Q2 revenue of approximately $22.0 bln

Result Drivers

• AI SEMICONDUCTOR GROWTH - Broadcom's Q1 AI revenue grew 106% year-over-year, driven by demand for custom AI accelerators and AI networking

• SEMICONDUCTOR SOLUTIONS - Semiconductor solutions segment revenue increased 52% year-over-year, contributing to overall revenue growth

Company press release: ID:nPnb36hQya

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 49 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the semiconductors peer group is "buy"

• Wall Street's median 12-month price target for Broadcom Inc is $454.00, about 44.7% above its March 3 closing price of $313.84

• The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 43 three months ago

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