(AOF) – The manufacturer of semiconductors and publisher of infrastructure software Broadcom has unveiled profits and forecasts higher than projections. In the fourth quarter, which ended at the end of October, the group made net profit of $3.36 billion, or $7.83 per share, compared with net profit of $1.99 billion, or $4.45. per share, a year earlier. Excluding exceptional items, earnings per share reached $10.45, compared to the consensus of $10.29.
Broadcom’s sales rose 21% to 8.93 billion dollars while the market was targeting 8.9 billion.
In the first quarter, the technology group is aiming for a turnover of around 8.9 billion dollars (+ 16%), higher than Wall Street expectations: 8.78 billion dollars.
Kirsten Spears, Broadcom’s Chief Financial Officer said, “Consistent with our commitment to return cash to shareholders, we will resume our share buyback program for the remaining $13 billion, and we are increasing our quarterly stock dividend by 12% , at $4.60 per share for fiscal year 2023.”
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Growing market and price pressures
According to the SIA, global chip sales were $151.7 billion in the first quarter of 2022, up 23% year-on-year. Sales increased in all major regional markets and for all product categories. As global uncertainties, including the war in Ukraine and the health crisis, weigh on supply chains, demand for semiconductors continues to significantly outpace supply. Manufacturers Samsung and TSMC have announced that they will raise their prices, in a context where players in the sector have good leeway and benefit from increased bargaining power. However, wage increases and component prices could weigh on future performance.