A previous version of this story misstated the share buyback amount.
Broadcom Inc. shares rose in the extended session Thursday after the chip and software company’s results and outlook topped Wall Street estimates, and its share buybacks reached $2.7 billion out of a planned $10 billion for the year.
shares rose 4% after hours, following a 1.2% decline in the regular session to close at $578.60.
The company reported fiscal first-quarter net income of $2.47 billion, or $5.59 a share, compared with $1.38 billion, or $3.05 a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation and other items, were $8.39 a share, compared with $6.61 a share in the year-ago quarter.
Revenue rose to $7.71 billion from $6.66 billion in the year-ago quarter. Analysts surveyed by FactSet had expected earnings of $8.13 a share on revenue of $7.61 billion, based on Broadcom’s forecast revenue of about $7.6 billion.
The company reported a 20% gain in chip sales to $5.87 billion from the year-ago period, and a 5% rise in infrastructure software sales to $1.83 billion. Analysts had forecast chip sales of $5.75 billion and infrastructure software sales of $1.85 billion.
“Broadcom’s record first quarter results were driven by strong enterprise demand, and continued investments in next generation technology by hyperscale and service providers,” said Hock Tan, Broadcom president and chief executive, in a statement. “Our second quarter outlook projects year-over-year growth to accelerate.”
Broadcom forecast revenue of about $7.9 billion for the fiscal second quarter, while analysts had estimated revenue of $7.43 billion.
Broadcom reported it spent $2.7billion on share buybacks during the quarter. Last earnings report, Broadcom’s board authorized a new $10 billion share-buyback program for 2022, and hiked the company’s quarterly dividend 14%.
Over the past 12 months, shares of Broadcom have gained 25%. In comparison, the S&P 500 index
has risen 14%, the tech-heavy Nasdaq Composite Index
has gained 4%, while the PHLX Semiconductor Index
has advanced 12% over that time.