(Bloomberg) – Broadcom Inc. shares fell after the company’s major slide division reported revenue that just missed Wall Street’s estimate.
The company in San Jose, California, supplies Apple Inc. and the latest iPhone models have sold well in recent months. This raised expectations ahead of Broadcom’s results.
Revenue from semiconductor solutions amounted to $ 4.91 billion in the first fiscal quarter. Analysts were looking for $ 4.93 billion, according to data compiled by Bloomberg.
Broadcom fell 3.4% in extended trading, after closing earlier in New York at $ 443.59.
Revenue for the three months to end-April will be about $ 6.5 billion, the company said in a statement. This compares with an average analysis estimate of $ 6.33 billion.
Broadcom is one of the largest chipmakers in the world with businesses spanning smartphone parts, key components of network equipment and semiconductors that manage Wi-Fi equipment and set-top boxes. This reach, which also includes mainframe and security software, makes its projections an indication of the future demand for major technology companies such as Apple, Samsung Electronics Co. and Google. The company in San Jose, California, contracts some of the production of its largest and most complex chips to Taiwan Semiconductor Manufacturing Co. The company and its peers are working flat to keep up with the huge demand, and in some markets there have been shortages, especially car chips. Net income rose 14% to $ 6.66 billion in the first fiscal quarter, the company said. For certain items, earnings were $ 6.61 per share. Analysts estimated earnings of $ 6.57 per share on revenue of $ 6.62 billion.
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