NASDAQ$AVGO

Broadcom Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported second quarter fiscal year 2022 financial results and quarterly dividends.

Broadcom's second quarter revenue reached a record $8.1 billion, a 23% increase year-over-year, with operating profit increasing 30%. The company generated $4.2 billion in free cash flow and returned $4.5 billion to shareholders through dividends and share repurchases.

  • Revenue of $8,103 million for the second quarter, up 23 percent from the prior year period
  • GAAP net income of $2,590 million for the second quarter
  • GAAP diluted EPS of $5.93 for the second quarter; Non-GAAP diluted EPS of $9.07 for the second quarter
  • $4,158 million of free cash flow from operations for the second quarter

Headline financials

Total Revenue

$8.1B

Previous: $6.61B+22.6%
EPS (adj)

$0.91

Previous: $0.66+37.9%
Cash Flow From Operations

$4.24B

No prior period
Adjusted EBITDA

$5.11B

Previous: $3.96B+29.1%
Capital Expenditures

-$186M

Previous: -$240M+22.5%
Free Cash Flow

$2.4B

Previous: $1.25B+91.9%
Net Income

$2.59B

Previous: $1.49B+73.5%
Operating Income

$3.39B

Previous: $1.98B+71.8%
Gross Profit

$5.44B

Previous: $4.06B+34.1%
Cash & Equivalents

$9.01B

Previous: $9.52B-5.4%
Total Assets

$71.7B

Previous: $75.5B-5.0%
Stock-Based Comp

$386M

Previous: $425M-9.2%

Revenue & EPS history

Broadcom · Revenue · Quarterly

$8.1B

Q2 2022+22.6%vs Q2 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Broadcom · $8.1B total across 2 segments · Q2 2022

  • Semiconductor Solutions
    $6.23B+29.2%
  • Infrastructure Software
    $1.87B+4.7%

Forward guidance

Third quarter revenue is expected to be approximately $8.4 billion, representing an increase of 24 percent from the prior year period. Third quarter Adjusted EBITDA is expected to be approximately 63.5 percent of projected revenue.

Tailwinds

  • Third quarter revenue guidance of approximately $8.4 billion
  • Expected revenue increase of 24 percent from the prior year period
  • Third quarter Adjusted EBITDA guidance of approximately 63.5 percent of projected revenue

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+3.1%

Avg return

Earnings day

+2.6%

Avg return

5 days after

+2.1%

Avg return

30 days after

70%

38 / 54 earnings

Positive

+22.7%

Q4 2024

Best reaction

-19.2%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+6.1%+7.9%-0.9%
Q4 2025-19.2%-19.8%-15.1%
Q3 2025+9.5%+20.7%+10.5%
Q2 2025+0.0%+1.0%+4.9%
Q1 2025+8.6%+8.2%-18.5%
Q4 2024+22.7%+31.1%+22.4%
Q3 2024-11.1%-3.8%+14.6%
Q2 2024+14.9%+25.2%+16.4%
Q1 2024+4.2%-4.3%-0.8%
Q4 2023+4.5%+18.7%+16.1%
Q3 2023-2.2%-2.3%-6.9%
Q2 2023+0.5%-2.2%+7.4%
Q1 2023+6.6%+5.3%+8.1%
Q4 2022+5.1%+10.1%+13.5%
Q3 2022+0.2%-0.2%-11.0%
Q2 2022+9.7%+9.1%-4.2%
Q1 2022+1.7%-1.7%+7.0%
Q4 2021+7.3%+4.5%+5.2%
Q3 2021+0.9%+0.7%-1.2%
Q2 2021+0.3%-2.2%-1.2%
Q1 2021-2.8%-4.2%+2.8%
Q4 2020-2.5%+0.4%+7.1%
Q3 2020-3.2%-6.5%-4.8%
Q2 2020+2.5%+1.9%+1.9%
Q1 2020-4.8%-18.9%+3.4%
Q4 2019-1.3%+1.3%-6.4%
Q3 2019-2.6%-3.1%-5.7%
Q2 2019-4.9%-0.6%+2.0%
Q1 2019+7.0%+10.4%+16.9%
Q4 2018-1.5%+6.4%+0.5%
Q3 2018+5.1%+5.0%+10.3%
Q2 2018-2.1%-0.8%-6.0%
Q1 2018-2.2%-7.0%-5.2%
Q4 2017+0.8%-0.6%+3.8%
Q3 2017-4.4%-5.9%-6.9%
Q2 2017+6.3%+6.0%-2.7%
Q1 2017+3.0%+3.3%+3.8%
Q4 2016+6.2%+6.5%+4.8%
Q3 2016-1.9%-3.0%-2.2%
Q2 2016+5.0%+6.5%-0.4%
Q1 2016+6.6%
Q4 2015+9.0%
Q3 2015+16.4%
Q2 2015+4.7%
Q1 2015+14.2%
Q4 2014+11.8%
Q3 2014+7.7%
Q2 2014+0.9%
Q1 2014+3.9%
Q4 2013+6.2%
Q3 2013+2.1%
Q2 2013+9.9%
Q1 2013+2.1%
Q4 2012+2.1%

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