Broadcom's Q4 Performance: Mixed Earnings, Dividend Hike, FY24 Guidance Exceeds Estimates, What Investors Need To Know

Benzinga

Broadcom Inc. (NASDAQ:AVGO) shares are trading lower in Thursday's after-hours session following the company's fourth-quarter results. Here's a summary of the performance.  What To Know: Broadcom reported quarterly earnings of $11.06 per share, exceeding analyst expectations of $10.98, a 5.84% increase over earnings of $10.45 per share from last year.  The company reported quarterly sales of $9.29 billion, missing the Street's estimate of $9.41 billion. The figure represents a 4.09% increase over sales of $8.93 billion in the same period last year.  Cash and cash equivalents were $14.19 billion at the end of the quarter, compared to $12.06 billion at the end of the previous quarter.  Additionally, the company increased its quarterly dividend by 14% to $5.25.  Broadcom issued its full-year 2024 revenue outlook, anticipated to be approximately $50 billion, versus the $45.76 billion estimate. Adjusted EBITDA is estimated to be approximately 60% of the company's projected revenue.  "Broadcom's fiscal year 2023 revenue grew 8% year-over-year to a record $35.8 billion, driven by investments in accelerators and network connectivity for AI by hyperscalers," said Hock Tan, President and CEO of Broadcom Inc.  "The acquisition of VMware is transformational. In fiscal year 2024 we expect semiconductor to sustain its mid to high single digit revenue growth rate, with the contribution of VMware driving consolidated revenue to $50 billion, and adjusted EBITDA to $30 billion."

Transcript

00:00 Let's go to Broadcom as they reported their earnings Q4 adjusted EPS here at $11.06 beating the $10 and 98 cents

00:09 Sales at 9.29 billion missed the 9.41 billion estimate

00:14 Broadcom sees fiscal year 24 revenues at 50 billion versus a 45.76 billion estimate

00:22 They see adjusted EBITDA of 60% of projected revenues increasing their quarterly dividend by 14%

00:29 For all our income traders out there this doesn't look too bad with $5.25 here per share for the fiscal year 24

00:39 Straddle buyers are crying in their soup, straddle writers are just whistling Dixie here

00:47 I'm not sure what the expected move is but I know it's a lot more than that

00:51 I mean you had the move in the pre-market trading here that you could air the after hours trading where you could have definitely trimmed

00:57 Went wide on this one on the closing print. I'm thinking hey, why not? You know, we'll see what happens at 900

01:04 It did smash through 900. I thought maybe on a pop we could get back half of this move at 950

01:10 Didn't quite get to 950. So here you are

01:14 down a buck 26

01:16 levels to keep an eye on

01:19 Still that double bottom persists at the 903 50 area if you start to go into decline

01:25 And I think he's fine sellers on a rally first things first for the Bulls

01:30 You got to get through yesterday's high

01:33 924 12 and then things open up a little bit but

01:37 battle for unchanged here in

01:40 Broadcom spikes both ways in the pre-market but Street still deciding what to do with this report

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