Broadcom Announces Second Quarter 2019 Results

Shares of Broadcom chip maker fell more than 7% on Thursday after the company posted lower-than-expected sales for the second quarter of its 2019 fiscal year, which ended May 5th , and reduces its revenue forecast.

Here are the key figures for the quarter:

• Earnings: $ 5.21 per share, excluding certain items, compared with $ 5.16 per share as expected by analysts, according to Refinitiv.
• Returned: $ 5.52 billion, compared with $ 5.68 billion as expected by analysts, according to Refinitiv.

Broadcom 's business figure rose 10% year – over – year during the quarter, according to a statement.

Broadcom's largest business sector, semiconductor solutions, generated a business turnover of $ 4.09 billion, lower than the consensus estimate of $ 4.18 billion from the FactSet. The infrastructure software industry, including the contributions of the business AC acquired by Broadcom in 2018, generated a business turnover of 1.41 billion USD, lower than the estimate of $ 1.37 billion of FactSet.

In recent weeks, other semiconductor companies have lowered their forecasts as a result of the US government's efforts to limit Huawei's ability to purchase products from US companies. Analysts Piper Jaffray, Harsh Kumar and Matthew Farrell, estimated that Huawei accounted for 3% of Broadcom 's business revenue, amounting to about $ 150 million per quarter, in a note distributed to customers May 24th. blacklist, which was announced in mid-May.

Broadcom has lowered its guidance for the full year of 2019, saying it is now expecting a turnover of $ 22.50 billion during this period. The consensus among analysts surveyed by Refinitiv was $ 24.31 billion in revenue for the 2019 fiscal year. In the previous quarter, Broadcom had generated an annual revenue of $ 24.50. billions of dollars.

"We are currently witnessing a general slowdown in demand, which we believe is attributable to persistent geopolitical uncertainties as well as the effects of export restrictions on one of our most As a result, our customers are actively reducing their inventory in Thursday's statement, said Broadcom CEO Hock Tan.

Broadcom's stock has increased 10% since the beginning of 2019.

Leaders will discuss the results with analysts at 5 pm Eastern Time.

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