Broadcom Limited (NASDAQ: AVGO) released its Q2 earnings after the closing bell on Thursday and stock has risen a considerable 7% Friday morning.
A leading semiconductor supplier to wired, wireless, enterprise storage, Broadcom Ltd. announced a 44% net income increase since last quarter, pushing it to $1.05 per diluted share or $464 million. Cash balance has also grown from $3,536 million to $4,254 million, the Company had also generated $1,583 million in cash and spend $256 million on capital expenditures. The Company’s gross margin dipped a little from the previous quarter, going down to $1,976 million from $2,001 million, however it still represents significant growth from the same quarter last year, which was reported at $1,046 million.
“We delivered strong financial results for our second fiscal quarter with revenue, gross margin and EPS all above the top end of guidance,” said Hock Tan, President and CEO of Broadcom Limited. “Anticipating that end markets will remain healthy, we expect third fiscal quarter revenue growth of approximately six percent sequentially, driven by solid growth from our wired segment and a seasonal second half ramp in our wireless segment.”
Investors are bull on AVGO and expect its growth to continue with increased content in Q3 at Apple and as it has been estimates this quarter, it is possible this trend will continue.