Broadcom falls after slashing revenue guidance

Hock Tan, chief executive officer of BroadcomMartin H. Simon | Bloomberg | Getty ImagesShares of chipmaker Broadcom fell more than 7% on Thursday after the company reported lower-than-expected revenue for the second quarter of its 2019 fiscal year, which ended on May 5.Here are the key numbers:Earnings: $5.21 per share, excluding certain items, vs. $5.16 per share as expected by analysts, according to Refinitiv.Revenue: $5.52 billion, vs. $5.68 billion as expected by analysts, according to Refinitiv.Broadcom’s revenue grew 10% year over year in the quarter, according to a statement.In recent weeks other semiconductor companies have lowered their forecasts following the U.S. government’s efforts to limit Huawei’s ability to purchase products from U.S. companies. Piper Jaffray analysts Harsh Kumar and Matthew Farrell estimated that Huawei represents 3% of Broadcom’s revenue at about $150 million per quarter in a note distributed to clients on May 24. The analysts lowered their full-year earnings and revenue estimates for Broadcom in light of the blacklisting, which was announced in mid-May.Broadcom said it expects to achieve $22.50 billion in revenue in the full 2019 fiscal year. The consensus among analysts polled by Refinitiv was $24.31 billion in revenue for the 2019 fiscal year. In the previous quarter Broadcom had guided $24.50 billion in full-year revenue. « We currently see a broad-based slowdown in the demand environment, which we believe is driven by continued geopolitical uncertainties, as well as the effects of export restrictions on one of our largest customers. As a result, our customers are actively reducing their inventory levels, and we are taking a conservative stance for the rest of the year, » Broadcom CEO Hock Tan was quoted as saying in Thursday’s statement.Broadcom stock has risen 10% since the beginning of 2019.Executives will discuss the results with analysts at 5 p.m. Eastern time.This is breaking news. Please check back for updates.WATCH: Chips rebound after trade restrictions temporarily lifted

Source: CNBC

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