Broadcom Inc (NASDAQ:AVGO) reported better-than-expected earnings and overall sales for its fourth quarter. However, the company’s chip sales came in slightly below analysts’ estimates
Net revenue came in at $6.665 billion for the fourth quarter, compared to $5.858 billion in the prior-year quarter, a 14% improvement. Net income proved to be $1.378 billion, compared to $385 million.
During the first fiscal quarter, the Company generated $3,113 million in cash from operations and spent $114 million on capital expenditures.
On December 31, 2020, the Company paid a cash dividend of $3.60 per share of common stock, totaling $1,468 million and a cash dividend of $20.00 per share of mandatory convertible preferred stock, totaling $75 million.
CEO Hock Tan said, "We executed well during our first fiscal quarter driving 14% organic growth year on year, This growth reflects the critical role our technology franchises play in this environment of accelerated digital transformation."
Based on current business trends and conditions, the outlook for the second quarter of fiscal year 2021, ending May 2, 2021, is expected to reveal second-quarter revenue guidance of approximately $6.5 billion ; and second-quarter Adjusted EBITDA guidance of approximately 59% of projected revenue
AVGO shares tumbled $6.67, or 1.5%, to $436.92.
