Broadcom hits its Q1 target but withdraws guidance due to COVID-19

Broadcom reported revenue of $5.858 billion, up 1% yoy, for its first quarter of fiscal year 2020, ended February 2, 2020, but withdrew financial guidance for the rest of the year due to uncertainty about the COVID-19 crisis.

GAAP net income for the quarter was $385 million, with diluted EPS of $0.74, and non-GAAP diluted EPS of $5.25.

“Our first fiscal quarter results were in line with our expectations, with our networking, storage and broadband businesses together growing nicely year over year,” said Hock Tan, President and CEO of Broadcom Inc. “The fundamental semiconductor backdrop has been improving, and we did not see any material impact on our businesses due to COVID-19 in our first quarter. However, visibility in our global markets is lacking and demand uncertainty is intensifying. As a result, we believe it prudent to withdraw our annual guidance until visibility returns to pre COVID-19 levels.”

“We generated over $2.2 billion in free cash flow in the quarter, which represented 9% growth on a year on year basis,” said Tom Krause, CFO of Broadcom Inc. “We ended the first quarter with over $6.4 billion of cash on hand and our cash flow outlook remains healthy. As a result, we are well positioned to continue to support our dividends to stockholders despite the challenging market backdrop.”

https://investors.broadcom.com/events/event-details/q1-2020-broadcom-earnings-conference-call