Broadcom predicts bullish sales for current quarter on 5G ramp-up

By on June 3, 2021 0

By Eva Mathews and Stephen Nellis

(Reuters) -Broadcom Inc is forecasting current quarter revenue above Wall Street expectations on Thursday, as the semiconductor company is expected to benefit from the growing adoption of 5G technology.

As the global rollout of 5G accelerates, strong demand for more expensive chips used in smartphones will benefit Broadcom, which counts iPhone maker Apple Inc as a major customer for its wireless chip division.

The company, which also makes chips for data centers and servers, estimates third-quarter revenue at around $ 6.75 billion, compared to $ 6.6 billion by analysts, according to data from Refinitiv IBES. The company’s tax estimates for the third quarter typically include an increase in production for the launch of Apple’s iPhones in the fall.

Revenue reached $ 6.61 billion in the second quarter ended May 2, from $ 5.74 billion a year earlier. Analysts were forecasting sales of $ 6.51 billion.

The company reported second-quarter net income of $ 1.49 billion, or $ 3.30 per share, from $ 563 million, or $ 1.17 per share, a year earlier.

On an adjusted basis, the company earned $ 6.62 per share, beating estimates of $ 6.43 per share, according to data from Refinitiv.

(Reporting by Eva Mathews and Chavi Mehta in Bengaluru; Editing by Amy Caren Daniel and Jonathan Oatis)