Broadcom Falls After Chip Sales Miss IPhone-Fueled Expectations
(Bloomberg) -- Broadcom Inc. shares fell after the company’s main chip division reported revenue that just missed Wall Street estimates.
The San Jose, California-based company supplies Apple Inc. and the latest iPhone models have sold well in recent months. That raised expectations ahead of Broadcom’s results.
Semiconductor solutions revenue came in at $4.91 billion in the fiscal first quarter. Analysts were looking for $4.93 billion, according to data compiled by Bloomberg.
Broadcom dropped 3.4% in extended trading, after closing at $443.59 earlier in New York.
Revenue in the three months ending April will be about $6.5 billion, the company also said in a statement. That compares with an average analyst estimate of $6.33 billion.
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.
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.
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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