Investing
Broadcom beats Q4 earnings estimates with strong AI, networking demand
© Reuters.
SAN JOSE – Broadcom Inc. (NASDAQ:) has reported its fourth-quarter fiscal earnings, showcasing a robust performance with non-GAAP EPS at $11.06, which is a 1% beat on estimates and represents a 6.7% increase from the previous year. The company’s net revenues also saw an uplift, rising by 4.1% to reach $9.295 billion.
The semiconductor solutions segment of Broadcom saw a 3.3% annual increase, hitting $7.326 billion in revenue, buoyed by heightened demand from hyperscalers. Additionally, the generative AI segments contributed significantly to the top line, pulling in $1.5 billion primarily through sales of Ethernet solutions and custom AI accelerators.
Networking revenue was another area of strength for Broadcom, climbing 23% year over year to $3.1 billion. This surge was attributed to robust demand for networking hardware from hyperscalers, which offset declines noted in both storage connectivity and broadband sectors.
Infrastructure software continued to be a solid performer with a 7.1% annual increase in revenue, approaching the $2 billion mark. This was supported by strong renewal rates across its portfolios. Although there was a slight contraction in non-GAAP gross margin, adjusted EBITDA margin saw significant improvement.
Broadcom’s financial health remains sturdy with over $14 billion in cash reserves as of the end of October 2023, while total debt showed a marginal decrease from the end of July figures. Research & Development (R&D) spending fell slightly as a percentage of net revenues year-over-year to 10.1%, and Selling, General & Administrative (SG&A) expenses also dropped to 2.4%. The company’s free cash flow remained strong for the quarter at approximately $4.723 billion.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Read the full article here
-
Side Hustles7 days ago
How to Develop Empowered Leaders Within Your Own Team
-
Side Hustles5 days ago
How to Be Unapologetically You and Why It Matters
-
Passive Income6 days ago
Are You Running Your Business, or Is Your Business Running You?
-
Investing6 days ago
7 Marketing Strategies to Help Your Startup Grow and Scale
-
Side Hustles6 days ago
How Your Body Language Can Help Win a Disagreement
-
Side Hustles6 days ago
OpenAI Raises Record $6.6 Billion, Adds 50 Million New Users
-
Side Hustles7 days ago
Why the Best Time to Sell Your Business Is When You Least Expect It
-
Investing4 days ago
Nvidia CEO Jensen Huang: Demand For Blackwell AI Is Insane