Broadcom Ltd Shares Up After Strong Earnings Report

On Thursday after the bell, an American leading semiconductor device supplier to the wired, wireless, enterprise storage, and industrial end markets, Broadcom Ltd (NASDAQ: AVGO), reported Q2 results of $2.53 EPS which beat consensus estimates of $2.38, and revenue of $3.56B that beat analysts’ expectations of $3.46B.

“We delivered solid second quarter revenue, while exceeding EPS expectations for our first quarter operating as a combined company. Our increased scale and diversity is already proving very resilient, with strong product cycles in our now largest segment, wired, offsetting weaker demand in our enterprise storage and wireless segments,” said Hock Tan, President and CEO of Broadcom Limited. “We are expecting a robust third quarter, led by strong growth in wireless revenue, and continued strength in wired networking, and remain confident in our ability to leverage earnings growth as we work towards full integration and achievement of our operating model.”

The company has recently announced a quarterly, interim cash dividend of $0.50 per share. The dividend is payable on June 30 to shareholders or unitholders on record before June 17 close.


Based on current business trends and conditions, the outlook for continuing operations for the third quarter of fiscal year 2016, ending July 31, 2016 is expected to be as follows:














 Reconciling Items 




Net revenue


 $3,740M +/- $75M 




 $3,750M +/- $75M 


Gross margin


43.75% +/- 1%




60.00% +/- 1%


Operating expenses








Interest and other








Provision for (benefit from) income taxes








Diluted share count







Shares of AVGO up over 8% after the bell during AH, but due to the poor market performance, shares slowly climbed back down to +$8.25 (+5.33%) Friday afternoon.

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