In the early morning of June 4th, Beijing time, according to reports, Broadcom today released the company’s second-quarter financial report for the 2021 fiscal year. According to the report, Broadcom’s second-quarter net revenue was US$6.610 billion, an increase of 15% compared with US$5.742 billion in the same period last year, but a slight decrease compared with US$6.655 billion in the previous quarter; net profit was US$1.493 billion, An increase of 165% compared to $563 million in the same period last year and $1.378 billion in the previous quarter; net income attributable to common stockholders was $1.417 billion, compared to $488 million in the same period last year and $1.378 billion in the previous quarter $1.304 billion.
Broadcom’s second-quarter revenue and adjusted earnings per share beat Wall Street analysts’ expectations, and its third-quarter revenue outlook also beat analysts’ expectations, pushing its shares up slightly after the bell.
Main achievement:
In the quarter ended May 2, Broadcom’s net profit was $1.493 billion, net profit attributable to common stockholders was $1.417 billion, and diluted earnings per share was $3.30, which was much better than the same period last year. , also better than the previous quarter. In contrast, Broadcom’s net profit in the first quarter of fiscal 2021 was $1.378 billion, net profit attributable to common stockholders was $1.304 billion, and diluted earnings per share was $3.05; the second quarter of fiscal 2020 Net income was $563 million, net income attributable to common stockholders was $488 million, or $1.17 per diluted share.
Excluding certain one-time items (not in accordance with U.S. GAAP), Broadcom’s second-quarter adjusted net profit was $2.980 billion, and adjusted earnings per diluted share were $6.62, beating analysts’ expectations. By comparison, Broadcom’s adjusted net income from continuing operations in the second quarter of fiscal 2020 was $2.323 billion, and adjusted earnings per diluted share were $5.14. According to data provided by the Yahoo Finance website, 26 analysts had expected Broadcom’s second-quarter earnings per share to reach $6.42 on average.
Broadcom’s second-quarter net revenue was $6.610 billion, up 15% from $5.742 billion in the same period last year, but down slightly from $6.655 billion in the previous quarter, a performance that also beat analysts’ expectations. According to data provided by the Yahoo Finance website, 25 analysts had expected Broadcom’s second-quarter revenue to reach $6.51 billion on average.
Divided by division, Broadcom’s second-quarter net revenue from the semiconductor solutions business was US$4.820 billion, an increase of 20% compared with US$4.027 billion in the same period last year, accounting for 73% of total net revenue. This compares to 70% in the same period last year; net revenue from infrastructure software was $1.790 billion, an increase of 4% compared to $1.715 billion in the same period last year, as a percentage of total net revenue 27%, compared with 30% in the same period last year.
Broadcom’s second-quarter operating expenses were $2.082 billion, compared with $2.115 billion in the previous quarter and $2.423 billion in the same period last year. Among them, research and development expenses were $1.238 billion, compared with $1.211 billion in the previous quarter and $1.269 billion in the same period last year; sales, general and administrative expenses were $325 million, compared with $3.39 in the previous quarter $501 million in the same period last year; amortization of intangible assets related to mergers and acquisitions was $494 million, compared to $494 million in the previous quarter and $599 million in the same period last year; restructuring, impairment and disposal expenses were $2,500 million, compared with $71 million in the prior fiscal quarter and $54 million in the same period last year. Non-GAAP operating expenses for Broadcom in the second quarter were $1.150 billion, compared to non-GAAP operating expenses of $1.096 billion in the prior quarter and non-GAAP operating expenses in the same period last year Expenses were $1.165 billion.
Broadcom’s second-quarter gross profit was $4.057 billion, compared with $3.952 billion in the previous quarter and $3.189 billion in the same period last year. Not in accordance with GAAP, Broadcom’s second-quarter gross profit was $4.952 billion, compared with $4.876 billion in non-GAAP gross profit in the previous quarter, and non-GAAP gross profit in the same period last year. Gross profit was $4.196 billion.
Broadcom’s second-quarter operating profit was $1.975 billion, compared with $1.837 billion in the previous quarter and $766 million in the year-ago period. Non-GAAP operating profit in the second quarter was $3.802 billion, compared with $3.780 billion in non-GAAP operating profit in the previous quarter and non-GAAP operating profit in the same period last year. Operating profit was $3.031 billion.
On a non-GAAP basis, Broadcom’s adjusted EBITDA in the fiscal second quarter was $3.960 billion, compared with $3.209 billion in the same period last year.
Cash and Dividend Related News:
Broadcom’s second-quarter cash from operating activities was $3.569 billion, compared with $3.213 billion in the same period last year; capital expenditures were $126 million. Broadcom’s second-quarter free cash flow was $3.443 billion, compared with $3.065 billion in the same period last year. Broadcom held $9.518 billion in cash and cash equivalents at the end of the fiscal second quarter, compared with $9.552 billion at the end of the previous quarter.
On March 31, 2021, Broadcom paid a cash dividend of $3.60 per common share, and the total funds spent on paying the cash dividend amounted to $1.477 billion; and a mandatory convertible preferred share of $20.00 per share USD cash dividend, the total amount of funds spent to distribute this cash dividend is $75 million.
Broadcom’s Board of Directors has approved the payment of a quarterly cash dividend of $3.60 per common share, which will be paid on June 30, 2021 as of June 22, 2021 at 5:00 p.m. point) issued to shareholders of record until the close of business hours.
In addition, Broadcom’s Board of Directors has approved the payment of a quarterly cash dividend of $20.00 per mandatory convertible preferred stock, payable on June 30, 2021, as of June 15, 2021 at 5:00 p.m. ET (2021 GMT) Issued to shareholders of record until the close of business on June 16, 2009 at 5:00 a.m.
Performance Outlook:
Broadcom expects net revenue for the third fiscal quarter of fiscal 2021 (ended August 1, 2021) to be around $6.75 billion, beating analyst expectations; not in accordance with GAAP, adjusted EBITDA is among expected revenue The proportion is expected to reach about 60%. According to data provided by the Yahoo Finance website, 26 analysts had expected Broadcom’s third-quarter revenue to reach $6.59 billion on average.
Share price changes:
On the same day, Broadcom shares fell $8.93 in regular Nasdaq trading to close at $464.80, or 1.89%. In subsequent after-hours trading as of 4:29 p.m. Eastern Time on the 3rd (4:29 a.m. Beijing time on the 4th), Broadcom shares rose $2.20, or 0.47%, to $467.00. In the past 52 weeks, Broadcom’s highest price was $495.14 and its lowest price was $292.41.
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