Broadcom (AVGO) posted strong earnings, but plummeted $13 a share.
All thanks to guidance for the current quarter.
Revenue jumped 47% to $13.07 billion, which was above expectations of $12.97 billion. Adjusted EPS of $1.24, up 18% year over year, beat estimates by four cents. EBITDA of $8.22 billion even beat estimates of $7.8 billion.
Unfortunately, its outlook was mixed.
Broadcom provided revenue guidance for the current quarter of $14 billion versus the $14.11 billion consensus.
However, despite that guidance, analysts at Evercore reiterated an outperform rating on the stock with a $201 price target. The firm also cited the company’s “excellent” AI visibility, as noted by CNBC. Goldman Sachs also reiterated a buy rating on AVGO with a $190 target.
“In the near-term, post this quarter’s hiccup, we envision a re-acceleration in the AI Semiconductor business coupled with a cyclical recovery in the non-AI revenue stream … putting the company back on a beat and raise cadence,” Goldman Sachs added.