Earnings Updates | Q1 2024

June 19, 2024by toleg.work

The corporate reporting period has is ending.

Last week, 4 companies from the S&P 500 index reported.

Today, let’s take a look at Broadcom’s results. Its revenue is $12.4B. It grew by +9.7% compared to the corresponding value for the previous quarter and exceeded analysts’ expectations by +3.6%. Let’s analyze the company’s business in more detail.

Broadcom is one of the world’s largest semiconductor manufacturers, specializing in products for the wireless communications and software industries. On average, over the past 5 years, the company has registered more than 500 new patents annually.

Revenue of the company increased by +39.3% compared to the same quarter last year. The company is getting a significant increase in demand for its products due to the development of the use of AI products. In this regard, Broadcom increased its R&D expenses by +4.3% in the reporting quarter and by +84.3% compared to the corresponding quarter of the previous year. Such an increase in R&D costs is due to the high total cost of a 1-chip development project – from $50M to $100M, which allows the company to maintain a competitive position in the market.

37% of the revenue structure is made up of manufacturing costs, and 63% is gross revenue. Over the past quarter, the company earned a profit of $2.1B, and its market capitalization is $807B.

After the publication of the report, Broadcom shares rose by +12.2% to reach $1735 per share. Market participants are satisfied with the company’s financial results and have responded positively to the company’s development prospects.

*surprise – % ratio between actual and expected revenue
**growth – % ratio of the amount of revenue for the last 4 quarters compared to this value calculated for the previous quarter

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