Broadcom (AVGO) Reported Strong Financials and Dividend, but Shares Fell on Poor Market Sentiment

Broadcom, Inc. (AVGO) reported strong financial results for Q1 of fiscal 2024 ended February 4, 2024, driven by two key factors: the acquisition of VMware and the strength of its network products in artificial intelligence data centers. Broadcom also declared a quarterly dividend of $5.25 per share and reported significant growth in revenue, adjusted EBITDA and free cash flow. The company reiterated its forecast for fiscal 2024, but that forecast is likely to disappoint given lofty expectations.

AVGO shares initially fell about 10% but later stabilized, narrowing the gap to the closing price. Broadcom reported first-quarter adjusted earnings of $10.99 per share, beating the consensus estimate of $10.37 by $0.62.

Sales increased by 34.2% over the previous year. Broadcom reported revenue of $11.96 billion, beating consensus estimates of $11.79 billion.