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Broadcom Inc. shares ticked higher in the extended session Thursday after the chip maker’s outlook for 2020 topped Wall Street estimates.
Broadcom AVGO, +2.53% AVGO, +2.53% said in its fiscal fourth-quarter earnings report Thursday afternoon that it expects fiscal 2020 revenue of $24.5 billion to $25.5 billion, while analysts surveyed by FactSet had forecast on revenue of $23.9 billion. For fiscal 2019, Broadcom reported revenue of $22.6 billion, up from $20.85 billion in fiscal 2018.
The company reported fiscal fourth-quarter net income of $818 million, or $2.06 a share, compared with $1.12 billion, or $2.71 a share, in the year-ago period. Adjusted earnings were $5.39 a share. Revenue rose to $5.78 billion from $5.44 billion in the year-ago quarter. Analysts had forecast earnings of $5.39 a share on revenue of $5.77 billion.
Broadcom shares rose 1% in the extended session immediately following the results, following a 2.5% rise in the regular session to close at $327.80. At Thursday’s close, Broadcom’s stock was up nearly 29% on the year, compared with a 26% advance on the S&P 500 index SPX, +0.86%, and a 56% rally in the PHLX Semiconductor Index SOX, +2.71%.
Of the 32 analysts who cover Broadcom, 20 have buy or overweight ratings, while 12 have hold ratings, along with an average price target of $329.63, according to FactSet data.
