By Yasin Ebrahim
Broadcom on Thursday reported fiscal second-quarter results that topped expectations, but the chipmaker warned that supply chain issues and an expected "substantial reset" in wireless would dent third-quarter growth.
Broadcom (NASDAQ:AVGO) shares lost 1.18% in after-hours trade following the report.
Broadcom expects third-quarter revenue of $5.75 billion, give or take $150 million, just below consensus of $5.78 billion in the upcoming quarter.
"Our third-quarter guidance for semiconductors reflects a surge in demand from cloud, telecom and enterprise customers, offset by supply chain constraints and an expected substantial reset," the company said.
Broadcom announced earnings per share of $5.14 on revenue of $5.74 billion. Analysts polled by anticipated EPS of $5.14 on revenue of $5.69 billion. That compared with EPS of $5.21 on revenue of $5.52 billion in the same period a year before. Broadcom had reported EPS of $5.25 on revenue of $5.86 billion in the previous quarter.
Semiconductor solutions, its core business, fell 2% to $4.03 billion, while infrastructure software fell 21% to $1.72 billion.
Broadcom shares are down 2.11% from the beginning of the year , still down 6.70% from its 52 week high of $331.58 set on January 24. They are outperforming the S&P 500 which is down 4.09% year to date.
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