AUS
NZ
UK
CA
USA
IND
Broadcom Inc. (Nasdaq: AVGO), a global leader in semiconductor and infrastructure software solutions, has announced robust financial results for its second quarter of fiscal year 2024, which ended on May 5, 2024. The company also provided its annual guidance and declared a quarterly dividend, highlighting its strong performance and strategic outlook.
Q2 2024 Financial Performance
For the second quarter, Broadcom reported revenue of $12,487 million, marking a significant 43 percent increase compared to the same period last year. This substantial growth reflects the company's strong market position and demand for its products.
Broadcom's GAAP net income for the quarter was $2,121 million. On a non-GAAP basis, net income stood at $5,394 million. This divergence underscores the impact of adjustments related to items such as stock-based compensation and acquisition-related expenses.
Adjusted EBITDA for the second quarter reached $7,429 million, representing 59 percent of revenue. This strong EBITDA margin demonstrates Broadcom's efficient operational management and profitability.
Earnings Per Share and Cash Flow
The company's GAAP diluted earnings per share (EPS) for the quarter was $4.42. On a non-GAAP basis, diluted EPS was reported at $10.96. This significant difference again reflects adjustments made for one-time items and non-cash charges.
Broadcom generated $4,580 million in cash from operations during the second quarter. After accounting for capital expenditures of $132 million, the company achieved free cash flow of $4,448 million, equating to 36 percent of revenue. This strong cash flow performance enables Broadcom to reinvest in its business and return capital to shareholders.
Quarterly Dividend
Reflecting its strong financial health and commitment to shareholder returns, Broadcom announced a quarterly common stock dividend of $5.25 per share. This dividend underscores the company's confidence in its future cash flow generation capabilities.
Annual Guidance for Fiscal 2024
Looking ahead, Broadcom provided its fiscal year 2024 guidance. The company expects annual revenue to reach approximately $51.0 billion, including contributions from its acquisition of VMware. This represents a 42 percent increase from the prior year period, highlighting Broadcom's growth trajectory.
The company also anticipates an annual Adjusted EBITDA margin of around 61 percent of projected revenue. This guidance indicates Broadcom's expectation of continued operational efficiency and profitability.
Stock Split Announcement
In a significant move to enhance stock liquidity, Broadcom announced a ten-for-one forward stock split. Trading on a split-adjusted basis is expected to commence on July 15, 2024. This stock split is intended to make Broadcom shares more accessible to a broader range of investors.
