Broadcom beats earnings estimates, announces 10-for-1 stock split

Broadcom posted earnings for the second fiscal quarter on Wednesday that beat analyst estimates. It also announced a 10-1 stock split, set to begin trading on a split-adjusted basis on July 15.

The stock rose about 10% in extended trading.

Here’s how the company did versus LSEG consensus estimates for the quarter ended in May:

• EPS: $10.96, adjusted, vs. $10.84 expected
• Revenue: $12.49 billion vs. $12.01 billion expected

The chipmaker said that it expected about $51 billion in sales during its fiscal 2024 year.

Broadcom reported $2.12 billion in net income during the quarter, or $4.42 per share, versus $3.48 billion in net income, or $8.15 per share, in the year-ago period.

Broadcom is one of the chipmakers benefitting from the AI boom, because its devices can run the sorts of artificial intelligence applications that have enamored the tech industry. Broadcom said that $3.1 billion in sales during the quarter could be attributed to revenue from AI products.

The company’s overall revenue was up 43% on an annual basis during the quarter.

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