Broadcom CEO Hock Tan speaks at the digital X event in Cologne, Germany, on Sept. 13, 2022. Ying Tang | Nurphoto | Getty Images Broadcom reported weaker-than-expected revenue in its fiscal second-quarter earnings report. The stock slid in extended trading. Here's how the chipmaker did versus LSEG consensus estimates: Earnings per share: $2.44, adjusted, versus $2.40 estimated Revenue: $22.19 billi...
Broadcom CEO Hock Tan speaks at the digital X event in Cologne, Germany, on Sept. 13, 2022. Ying Tang | Nurphoto | Getty Images Broadcom reported weaker-than-expected revenue in its fiscal second-quarter earnings report. The stock slid in extended trading. Here's how the chipmaker did versus LSEG consensus estimates: Earnings per share: $2.44, adjusted, versus $2.40 estimated Revenue: $22.19 billion versus $22.27 billion estimated Revenue climbed 48% from $15 billion in the same quarter a year earlier, Broadcom said in a statement. Sales have climbed in recent quarters, driven by demand for custom AI chips, including Google's tensor processing unit. The company said revenue this quarter will be about $29.4 billion, versus $28.53 billion expected by Wall Street analysts. Broadcom shares are up close to 40% this year as of Wednesday's close, topping the Nasdaq's 16% gain. The stock has multiplied almost ninefold since the end of 2022, when ChatGPT kicked off the generative AI boom. Net income increased to $9.31 billion, or $1.91 per share, up 88% from $4.97 billion, or $1.03 per share in the same quarter a year earlier. Adjusted earnings exclude stock-based compensation and tax adjustments. Broadcom helps other technology companies build custom chip designs, offering intellectual property and other essential technologies that AI chips require. It has attracted increased attention from investors as cloud giants including Amazon, Meta, and Microsoft design their own custom chips. In December, Tan said that Anthropic had placed an order for $10 billion in AI chips. AI revenue more than doubled in the second quarter on an annual basis to $10.8 billion, which CEO Hock Tan attributed in a statement to the company's custom AI chips as well as other parts needed to network them together. He said the company expected AI revenue to triple in the current quarter to $16 billion. Broadcom reported $15.1 billion in revenue from semiconductor solutions, the company's chip sales divi...
The US Department of Agriculture said a case of New World screwworm may have been detected in South Texas, a development that could pose a fresh threat to the nation’s cattle herd already at its lowest level in 75 years. The agency said in a post on X that a sample is now at an Iowa lab for confirmation testing. Reuters reported earlier Wednesday that the samples were from a cattle ranch in La Pry...
The US Department of Agriculture said a case of New World screwworm may have been detected in South Texas, a development that could pose a fresh threat to the nation’s cattle herd already at its lowest level in 75 years. The agency said in a post on X that a sample is now at an Iowa lab for confirmation testing. Reuters reported earlier Wednesday that the samples were from a cattle ranch in La Pryor, Texas, citing Texas state representative Don McLaughlin. If confirmed, it would be the first detection of screwworm in the US since 2016 when a case was reported among deer in the Florida Keys, before being eradicated by early 2017, according to the USDA . That would likely trigger restrictions to the movement of cattle that could impact the activity of meatpackers. Shares of beef processors and Chicago live cattle futures fell. Tyson Foods Inc. dropped as much as 5.8% to the lowest intraday level in about five months, while JBS NV shares fell more than 3% to the lowest since US trading began nearly a year ago. The US has been trying to contain the spread of the pest, which can kill an animal within days, by pausing imports of live Mexican cattle and building new facilities to disperse sterile flies. Still, the number of cases has recently accelerated in Mexico. The closest previous bovine case was detected less than 40 miles away from the US on May 29, while it was also detected around the same time in a goat about 25 miles away, according to the USDA . Read More: More Screwworm Cases in Mexico Threaten Cattle Trade With US While the risk to humans is low, the US also confirmed one case of the parasite last year in an individual who had traveled from Central America.
Sundry Photography Broadcom ( AVGO ) shares fell 5.5% in extended trading on Wednesday even as the semiconductor and software giant reported second-quarter results and guidance that topped Wall Street's estimates, suggesting investors wanted more. For the period ending May 3, the Hock Tan-led company said it earned an adjusted $2.44 per share as revenue rose 48% year-over-year to $22.19B. Included...
Sundry Photography Broadcom ( AVGO ) shares fell 5.5% in extended trading on Wednesday even as the semiconductor and software giant reported second-quarter results and guidance that topped Wall Street's estimates, suggesting investors wanted more. For the period ending May 3, the Hock Tan-led company said it earned an adjusted $2.44 per share as revenue rose 48% year-over-year to $22.19B. Included in the $22.19B was $15.01B from semiconductors, up 79% year-over-year, while infrastructure revenue rose 9% to $7.18B. Analysts had expected the company to earn an adjusted $2.39 per share on $22.13BB in revenue. “Broadcom ( AVGO ) achieved record revenue, operating profit and free cash flow in Q2 driven by accelerating growth in AI semiconductor revenue and strong operating leverage. Q2 semiconductor revenue from AI of $10.8 billion grew 143% year-over-year, above our forecast, driven by increasing demand for custom AI accelerators and AI networking,” said Tan in a statement. “The momentum continues and in Q3 we expect semiconductor revenue from AI to grow over 200 percent year-over-year to $16.0 billion.” Looking ahead, Broadcom said it expects third-quarter revenue to be approximately $29.4B, with adjusted EBITDA around 68%. Analysts had expected $28.25B in third-quarter sales. Jonathan Weber , Investing Group Leader for Cash Flow Club, said the results were "very strong,” and the company is benefiting from the "massive tailwind" that is artificial intelligence. “While Broadcom was cheaper a couple of months ago, it's still not overly expensive today, and with its accelerating growth rate, I still like the stock,” Weber said via email. In addition, Broadcom said its board of directors approved a quarterly cash dividend of $0.65 per share. The dividend is payable on June 30 to stockholders of record on June 22. The company will host a conference call at 5 p.m. EST to discuss the results. (This story has been updated to include analyst commentary.) More on Broadcom Broadc...
Sundry Photography Broadcom ( AVGO ) shares fell 5.5% in extended trading on Wednesday even as the semiconductor and software giant reported second-quarter results and guidance that topped Wall Street's estimates, suggesting investors wanted more. For the period ending May 3, the Hock Tan-led company said it earned an adjusted $2.44 per share as revenue rose 48% year-over-year to $22.19B. Included...
Sundry Photography Broadcom ( AVGO ) shares fell 5.5% in extended trading on Wednesday even as the semiconductor and software giant reported second-quarter results and guidance that topped Wall Street's estimates, suggesting investors wanted more. For the period ending May 3, the Hock Tan-led company said it earned an adjusted $2.44 per share as revenue rose 48% year-over-year to $22.19B. Included in the $22.19B was $15.01B from semiconductors, up 79% year-over-year, while infrastructure revenue rose 9% to $7.18B. Analysts had expected the company to earn an adjusted $2.39 per share on $22.13BB in revenue. “Broadcom ( AVGO ) achieved record revenue, operating profit and free cash flow in Q2 driven by accelerating growth in AI semiconductor revenue and strong operating leverage. Q2 semiconductor revenue from AI of $10.8 billion grew 143% year-over-year, above our forecast, driven by increasing demand for custom AI accelerators and AI networking,” said Tan in a statement. “The momentum continues and in Q3 we expect semiconductor revenue from AI to grow over 200 percent year-over-year to $16.0 billion.” Looking ahead, Broadcom said it expects third-quarter revenue to be approximately $29.4B, with adjusted EBITDA around 68%. Analysts had expected $28.25B in third-quarter sales. Jonathan Weber , Investing Group Leader for Cash Flow Club, said the results were "very strong,” and the company is benefiting from the "massive tailwind" that is artificial intelligence. “While Broadcom was cheaper a couple of months ago, it's still not overly expensive today, and with its accelerating growth rate, I still like the stock,” Weber said via email. In addition, Broadcom said its board of directors approved a quarterly cash dividend of $0.65 per share. The dividend is payable on June 30 to stockholders of record on June 22. The company will host a conference call at 5 p.m. EST to discuss the results. (This story has been updated to include analyst commentary.) More on Broadcom Broadc...
thamerpic/iStock Editorial via Getty Images Glencore ( GLCNF ) ( GLNCY ) said Wednesday it resumed operations at its Cerrejón mine in Colombia, one of the world's largest open-pit coal mines, after a 10-day railway blockade forced it to suspend activity and declare force majeure. The company said it began restarting operations after lifting the force majeure declaration on June 2 once essenti...
thamerpic/iStock Editorial via Getty Images Glencore ( GLCNF ) ( GLNCY ) said Wednesday it resumed operations at its Cerrejón mine in Colombia, one of the world's largest open-pit coal mines, after a 10-day railway blockade forced it to suspend activity and declare force majeure. The company said it began restarting operations after lifting the force majeure declaration on June 2 once essential supply levels had been restored, after the blockade had prevented deliveries needed to maintain production and export activities. Cerrejón, which is one of Colombia's most important export operations and a major supplier to the Atlantic thermal coal market, has faced nearly 80 blockades so far this year, most linked to protests against the government over the lack of basic services in nearby communities. Communities around the mine have for years used blockades to protest what they say is harsh pollution that has affected their health and the environment. More on Glencore Glencore Shareholder/Analyst Call Transcript Glencore Shareholder/Analyst Call - Slideshow Glencore: Some Internal Changes Warrant An Update Of Valuation
Broadcom Inc. delivered a forecast for the current period that disappointed investors, signaling that AI-fueled sales are growing more slowly than some had anticipated. Revenue will be about $29.4 billion in the fiscal third quarter, which runs through July, the company said in a statement Wednesday. While analysts estimated $28.6 billion on average, some projections ranged billions of dollars hig...
Broadcom Inc. delivered a forecast for the current period that disappointed investors, signaling that AI-fueled sales are growing more slowly than some had anticipated. Revenue will be about $29.4 billion in the fiscal third quarter, which runs through July, the company said in a statement Wednesday. While analysts estimated $28.6 billion on average, some projections ranged billions of dollars higher, according to data compiled by Bloomberg. Though the company is making headway pivoting to artificial intelligence customers, it’s up against outsized investor expectations. Broadcom added roughly $270 billion in market value over the last five trading sessions before the earnings report, fueled by AI optimism. Broadcom has gotten a boost from rising demand for AI chips from customers like Alphabet Inc. ’s Google and Anthropic PBC . The company also recently announced an expanded multibillion-dollar deal with Meta Platforms Inc. for custom semiconductors to power the social media giant’s artificial intelligence efforts. Still, the latest report failed to satisfy investors, with the stock falling 6% in late trading. It was up 38% this year through the close.
Never Let Politicians Decide What Is True Authored by J.B. Shurk via American Thinker , We are living through an age that has abandoned the dedicated pursuit of truth . Our politicians and news personalities talk about "the narrative." Our academies teach young minds to accept "expert opinion." Our philosophers argue that truth is "subjective." Social theorists argue that truth is an "illusion" th...
Never Let Politicians Decide What Is True Authored by J.B. Shurk via American Thinker , We are living through an age that has abandoned the dedicated pursuit of truth . Our politicians and news personalities talk about "the narrative." Our academies teach young minds to accept "expert opinion." Our philosophers argue that truth is "subjective." Social theorists argue that truth is an "illusion" that powerful people use to control others. Whenever I hear Democrat Senator Cory Booker all riled up on television, he's talking about "her truth," "his truth," or even "their truth" - as if a hundred conflicting descriptions of the same event could all be truthful. During Justice Kavanaugh's confirmation hearings, Democrats called Dr. Christine Blasey Ford to testify before the Senate Judiciary Committee. Ford claimed that Kavanaugh had sexually assaulted her in 1982 when both were in high school. Kavanaugh vehemently denied the allegation and argued that many parts of Ford's story didn't add up. When Kavanaugh told the senators that the whole thing was a political spectacle being used as a weapon to derail his confirmation, Senator Booker shouted , "Are you calling her some kind of political operative?" Kavanaugh calmly pointed out, "The witnesses who were there [the party at which Blasey Ford claimed the alleged assault occurred] say it didn't happen." Kavanaugh then stated that, although Blasey Ford's allegations were false and harmful, his "family has no ill will toward her." This is how Booker responded to Justice Kavanaugh's total denial of the allegation against him: "She came forward. She sat here. She told her truth." Her truth . Not the truth . The "truth" that was most likely to help Democrats "Bork" Kavanaugh's nomination - just as then-Senator Joe Biden and fellow Democrats tried to do during Justice Clarence Thomas's confirmation hearings back in '91 when they brought in a witness who claimed that Thomas had made "unwelcome sexual comments" when the two worked...
IURII KRASILNIKOV/iStock via Getty Images Logan Energy Corp. ( LOECF ) acquired the non-operated interests of Gran Tierra ( GTE ) in the Simonette area as detailed in my last article . That increased the company's percentage of oil production at the same time that oil prices began a dramatic increase. This is yet another successful management that increased production per share just in time for ri...
IURII KRASILNIKOV/iStock via Getty Images Logan Energy Corp. ( LOECF ) acquired the non-operated interests of Gran Tierra ( GTE ) in the Simonette area as detailed in my last article . That increased the company's percentage of oil production at the same time that oil prices began a dramatic increase. This is yet another successful management that increased production per share just in time for rising commodity prices. The follow-up is that in the latest company presentation, the goal of increasing the percentage of oil production has also increased along with a slightly higher guidance for the fiscal year. Earnings On the income statement , the company reported a loss mostly due to a noncash hedging valuation adjustment. This is happening throughout the industry because oil prices unexpectedly increased dramatically. Actually, much of the industry was busy hedging to protect against expected weakening commodity prices throughout the year. As a result, a fair amount of pricing is locked in throughout the industry due to those hedges. But it also points out how fast the situation can change in this industry with little to no warning. This company is in the fast-growth phase of getting operations going. So, the higher commodity prices can be a big help at supplying extra cash flow at a time when the company really needs it. Furthermore, the company can add significantly to production that sells at the latest (favorable) spot prices to increase the benefits of higher prices should management determine it is in the best interests of the company. I believe the financial statements have little use except to spot big problems in a situation like this. Comparisons with the previous fiscal year are difficult, to say the least. This is a company that is acquiring acreage in an area with known dry gas production. So, the initial production on these leases was what was left of availability to recover dry gas. However, all drilling is to new intervals (thanks to technology advan...