HomeTechnologyBroadcom’s Earnings Report Beats Expectations, Company Announces 10-for-1 Stock Split

Broadcom’s Earnings Report Beats Expectations, Company Announces 10-for-1 Stock Split

Semiconductor maker Broadcom shared an earnings report for the second quarter that beat the estimations of analysts and caused its stock to surge more than 14% in aftermarket trading. The company also unveiled plans to initiate a 10-for-1 stock split.

Broadcom’s revenue in the second quarter came at $12.49 billion, while the analysts expected $12.03 billion. Its adjusted earnings per share came at $10.96 versus estimates of $10.84. Its net income was $2.12 billion compared to $3.48 billion in the same period of last year.

The company believes it will continue to benefit from the artificial intelligence book in the future and increase its forecast for the full 2024. Now, it expects a total of $51 billion in sales compared to analysts’ estimates of $50.42 billion.

Broadcom’s stock saw a 14.28% surge in after-hours, reaching $1,709.00 per share. Its stock has already been 75.71% up year-to-date before the recent jump.

In order to make its stock more accessible to individual investors and its employees, Broadcom’s board approved a 10-for-1 stock split. This means that its shareholders will receive nine additional shares for every share they own. The company’s shares will start trading on a split‐adjusted basis on July 15.

“The price of Broadcom common stock has increased significantly over the past few years. We believe the stock split will make ownership of Broadcom common stock more accessible to investors and employees,” the company said in a press release.

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