Investing.com - Chipmaker Broadcom (NASDAQ:AVGO) on Thursday reported first-quarter results that fell short of estimates and warned of increasing demand uncertainty, forcing it to pull its prior annual guidance.
"The fundamental semiconductor backdrop has been improving, and we did not see any material impact on our businesses due to COVID-19 in our first quarter," CEO Hock Tan said. "However, visibility in our global markets is lacking and demand uncertainty is intensifying."
"As a result, we believe it prudent to withdraw our annual guidance until visibility returns to pre COVID-19 levels," Tan added.
Broadcom announced earnings per share of $5.25 on revenue of $5.86 billion. Analysts polled by Investing.com anticipated EPS of $5.34 on revenue of $6 billion. That compared with EPS of $5.55 on revenue of $5.79 billion in the same period a year before. Broadcom had reported EPS of $5.39 on revenue of $5.78 billion in the previous quarter. Analysts are expecting EPS of $5.39 and revenue of $5.98 billion in the upcoming quarter.
Its semiconductor solutions segment, which accounts for the bulk of revenue, fell 4% to $4.19 billion.
Broadcom shares are down 31.09% from the beginning of the year , still down 34.32% from its 52 week high of $331.58 set on January 24. They are under-performing the Nasdaq 100 which is down 17.48% year to date.
Broadcom shares gained 0.15% in after-hours trade following the report.
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