Broadcom earnings beat on the top and bottom lines, but the stock is lower

Broadcom earnings are showing:

• EPS comes in at $1.24 versus expected $1.20. BEAT
• Revenues come in at $13.07 billion versus expected $12.96 billion BEAT
• Adjusted EBITDA came in at $8.22 billion versus expected $7.89 billion. BEAT

Forward guidance comes in at $14 billion which is marginally lower than the 14.1 billion estimate.

Other details

• Semiconductor Solutions Revenue: $7.27 billion (Expected: $7.41 billion). MISS
• Infrastructure Software Revenue: $5.80 billion (Expected: $5.5 billion). BEAT
• Adjusted Operating Income: $7.95 billion (Expected: $7.73 billion). BEAT
• Adjusted R&D Expense: $1.47 billion (Expected: $1.47 billion). MET
• Capital Expenditure: $172 million (Expected: $140.5 million). BEAT

Despite the beat the stock is down around -3.5% at $147. The price closed at $152.82. The 100-day moving average was at $149.57. With the current price trading around $147 the price is trading after-hours below the 100-day moving average.

We will see what the price action looks like during tomorrow’s trade but right now (and the US jobs report will have an impact before the US open), the bias will be more to the downside below that key 100 day moving average level.

This article was written by Greg Michalowski at www.forexlive.com.