(Bloomberg) – Broadcom Inc.’s shares fell after the company’s main chip division reported revenue that ended up losing Wall Street estimates.
The San Jose, Calif.-Based company supplies Apple Inc. and the latest iPhone models have sold well in recent months. This raised expectations ahead of Broadcom’s results.
Semiconductor solutions revenue reached $ 4.91 billion in the first fiscal quarter. Analysts had expected $ 4.93 billion, according to data compiled by Bloomberg.
Broadcom fell 3.4% on the extended trading session after closing at $ 443.59 at the start in New York.
Revenue in the three months ending in April will be about $ 6.5 billion, the company also said in a statement. This compares with an average analyst estimate of $ 6.33 billion.
Broadcom is one of the world’s largest chip makers, with businesses spanning smartphone parts, key components of network equipment and semiconductors that run home Wi-Fi equipment and set-top boxes. That reach, which also includes mainframe and security software, makes its projections an indicator of future demand for major technology companies such as Apple, Samsung Electronics Co. and Google. The company based in San Jose, California, outsources part of the production of its largest and most complex chips to Taiwan Semiconductor Manufacturing Co. This company and its peers are working at full speed to keep up with growing demand, and shortages have emerged in some markets , especially in automotive chips. Net revenue in the first fiscal quarter increased 14% to $ 6.66 billion, the company said. Before certain items, earnings were $ 6.61 per share. Analysts estimated earnings of $ 6.57 per share on earnings of $ 6.62 billion.
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