After Thursday’s trading close, Broadcom announced better-than-expected fiscal first quarter earnings and its plan to give back $12 billion to shareholders.
For the three months ending February 3, the semiconductor & infrastructure software company raked in earnings of $5.55 per share, higher than the Street estimates of $5.22 per share. The earnings-per-share were also greater than the year-ago quarter’s figure, by a solid +8.4%.
The company’s net revenues for the quarter jumped +8.7% from the year-ago period to $5.789 billion, falling a bit short of the consensus expectation of $5.82 billion.
Having experienced a free cash flow of more than $2 billion – a +39% year-over-year increase - Broadcom wants to pay out around $12 billion to stockholders through a combination of cash dividends and share buy backs and eliminations in fiscal 2019. The firm said it plans to maintain its “investment grade credit rating."
CEO Hock Tan indicated that strong performance in Broadcom’s networking segment boosted its semiconductor solutions business, in addition to solid results generated by the firm’s infrastructure software business for the first quarter of fiscal 2019.
Broadcom shares climbed almost +5% in after-hours trading after the release of the earnings report.