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Broadcom shares fell in price amid weak demand in the corporate segment
eleven.12.2021 [07:58],
Alexey Razin

For most suppliers of semiconductor components, the outgoing year has been successful in terms of revenue growth dynamics. Broadcom’s fourth fiscal quarter revenues jump 12% to $ 6.47 billion, beating analysts’ expectations, but weak corporate demand upset investors.

Image source: Barron’s

Net profit of the company grew by 56% to $ 1.32 billion compared to the same period last year. Revenue of the Broadcom division, engaged in the sale of semiconductor components, grew by 6% to $ 4.83 billion, in the program area, revenue grew by 36% to $ 1.64 billion. In both cases, it turned out to be higher than analysts’ expectations. For the current fiscal quarter, which ends in January, Broadcom has generated a revenue forecast of $ 6.6 billion, which also exceeded market expectations.

All this did not help to keep Broadcom shares from declining in price by 2% after the publication of quarterly reports, as the continuing high demand for telecommunications components, according to the head of the company, is adjacent to moderate demand from the corporate segment. Broadcom announces leadership reshuffle. Chief Financial Officer Tom Krause becomes President of the Infrastructure Software Group, replaced by Kristen Spears. Charlie Kawwas appointed COO of the company.