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Key Takeaways
- Broadcom reported second-quarter revenue beating analysts’ estimates, while earnings fell short of projections.
- The company said that AI product revenue reached a record high.
- Broadcom also announced a 10-for-1 forward stock split, with the first day of split-adjusted trading set for July 15.
- Shares of Broadcom surged in extended trading Wednesday following the release.
Broadcom (AVGO) reported second-quarter revenue beating analyst estimates, while earnings fell short of projections. The company indicated artificial intelligence (AI) drove the revenue beat and also announced a 10-for-1 forward stock split, sending shares up over 12% in extended trading Wednesday.
The company reported revenue of $12.49 billion for the fiscal second quarter of 2024, up 43% from the year-ago period, and above analysts’ expectations, according to estimates compiled by Visible Alpha.
Net income came in at $2.12 billion or $4.42 per share, down from $3.48 billion or $8.15 per share in the same period a year prior and below analysts’ projections.
| Â | Q2 FY24 | Â Analyst Estimates for Q2 FY24 | Â Q2 FY23 |
| Â Revenue | Â $12.49 billion | Â $12.04 billion | $8.73 billion |
| Â Diluted Earnings Per Share | Â $4.42 | Â $4.97 | $8.15 |
| Â Net income | Â $2.12 billion | Â $2.26 billion | $3.48 billion |
“Broadcom’s second quarter results were once again driven by AI demand and VMware,” Broadcom CEO Hock Tan said, adding “Revenue from our AI products was a record $3.1 billion during the quarter.”
The company also announced a 10-for-1 forward stock split “to make ownership of Broadcom stock more accessible to investors and employees.”
Stockholders of record after market close on July 11 will receive nine additional shares for each share held after market close on July 12, with split-adjusted trading starting July 15.
Broadcom shares were up over 12% at $1,687.20 as of 5:10 p.m. in extended trading Wednesday following the company’s release.