ECONOMY

Broadcom Gives Forecast That Meets Wall Street Estimates

Broadcom Inc., a chipmaker that supplies Apple Inc. and other big tech companies, gave a forecast that was in line with Wall Street estimates.

Revenue in the three months ending April will be about $6.5 billion. That compares with an average analyst estimate of $6.33 billion, according to data compiled by Bloomberg.

Broadcom is one of the world’s largest chipmakers with businesses spanning smartphone parts, key components of networking equipment and semiconductors that run home Wi-Fi gear 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.

Broadcom sales have been buoyed by new iPhone models that went on sale later than usual last year. Demand for the handsets has continued beyond the typical holiday shopping period, sustaining orders for Broadcom chips that process radio signals and handle Wi-Fi connections.

The San Jose, California-based company outsources some of the production of its biggest and most complex chips to Taiwan Semiconductor Manufacturing Co. That company and its peers are working flat out to keep up with booming demand, and shortages have appeared in some markets, particularly automotive chips.

Broadcom stock slipped about 2% in extended trading. The shares closed at $443.59 earlier in New York leaving them up roughly 1% this year.

Net revenue in the fiscal first quarter rose 14% to $6.66 billion, the company said. Before certain items, profit was $6.61 a share. Analysts estimated a profit of $6.57 a share on revenue of $6.62 billion.

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