Broadcom Ltd. (AVGO) Tops Q2 EPS by 15c, Sales In-Line
Broadcom Ltd. (NASDAQ: AVGO) reported Q2 EPS of $2.53, $0.15 better than the analyst estimate of $2.38. Revenue for the quarter came in at $3.54 billion versus the consensus estimate of $3.55 billion.
"We delivered solid second quarter revenue, while exceeding EPS expectations for our first quarter operating as a combined company. Our increased scale and diversity is already proving very resilient, with strong product cycles in our now largest segment, wired, offsetting weaker demand in our enterprise storage and wireless segments,” said Hock Tan, President and CEO of Broadcom Limited. “We are expecting a robust third quarter, led by strong growth in wireless revenue, and continued strength in wired networking, and remain confident in our ability to leverage earnings growth as we work towards full integration and achievement of our operating model.”
Third Quarter Fiscal Year 2016 Business Outlook
Based on current business trends and conditions, the outlook for continuing operations for the third quarter of fiscal year 2016, ending July 31, 2016 is expected to be as follows:
| GAAP | Reconciling Items | Non-GAAP | |||||
| Net revenue | $3,740M +/- $75M | $10M | $3,750M +/- $75M | ||||
| Gross margin | 43.75% +/- 1% | $599M | 60.00% +/- 1% | ||||
| Operating expenses | $1,812M | $1,003M | $809M | ||||
| Interest and other | $161M | $20M | $141M | ||||
| Provision for (benefit from) income taxes | ($88)M | ($147)M | $59M | ||||
| Diluted share count | 419M | 30M | 449M |
For earnings history and earnings-related data on Broadcom Ltd. (AVGO) click here.