Broadcom stock falls after earnings miss, warning about challenging market
Broadcom Inc. shares fell more than 6% in the extended session Thursday after the company missed revenue expectations and issued weaker-than-expected guidance. The company reported fiscal second-quarter net income of $691 million, or $1.64 a share, compared with $3.72 billion, or $8.33 a share, in the year-ago period, which included a $2.64 billion benefit from income taxes. Adjusted earnings were $5.21 a share. Revenue rose to $5.52 billion from $5.01 billion in the year-ago period. Analysts surveyed by FactSet had estimated adjusted earnings of $5.19 a share on revenue of $5.68 billion. For the fiscal third quarter, analysts model adjusted earnings of $5.69 a share on sales of $6.12 billion. Broadcom said it expects full-year fiscal 2019 revenue of $22.5 billion. Broadcom stock has gained 6.8% in the past year, with the S&P 500 index rising 3.8%.
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