NASDAQ$AVGO

Broadcom Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Broadcom's Q4 2020 financial results were announced, showing revenue growth and strong free cash flow.

Broadcom reported a strong fourth quarter with a 12% increase in revenue year-over-year, driven by demand for networking and wireless solutions. The company generated $3.246 billion in free cash flow and increased its quarterly common stock dividend by 11% to $3.60 per share.

  • Revenue increased by 12% year-over-year to $6.467 billion.
  • GAAP net income was $1.324 billion, with a non-GAAP diluted EPS of $6.35.
  • Free cash flow from operations reached $3.246 billion.
  • Quarterly common stock dividend increased by 11% to $3.60 per share.

Headline financials

Total Revenue

$6.47B

Previous: $5.77B+12.2%
EPS (adj)

$0.64

Previous: $0.54+18.5%
Adjusted EBITDA

$3.83B

Previous: $3.17B+20.9%
Capital Expenditures

$102M

Previous: $96M+6.3%
Free Cash Flow

$3.25B

Previous: $2.38B+36.2%
Net Income

$1.32B

Previous: $847M+56.3%
Operating Income

$1.53B

Previous: $1.05B+44.8%
Gross Profit

$3.75B

Previous: $3.15B+18.9%
Cash & Equivalents

$7.62B

Previous: $5.06B+50.7%
Total Assets

$75.9B

Previous: $67.5B+12.5%
Stock-Based Comp

$449M

Previous: $544M-17.5%

Revenue & EPS history

Broadcom · Revenue · Quarterly

$6.47B

Q4 2020+12.2%vs Q4 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Broadcom · $6.47B total across 2 segments · Q4 2020

  • Semiconductor Solutions
    $4.83B+5.6%
  • Infrastructure Software
    $1.64B+36.4%

Forward guidance

Broadcom anticipates continued overall strength in the first quarter of fiscal year 2021, with revenue expected to increase by 13% year-over-year and an adjusted EBITDA margin of 59%.

Tailwinds

  • First quarter revenue guidance of approximately $6.6 billion.
  • Expected revenue increase of 13 percent from the prior year period.
  • First quarter Adjusted EBITDA guidance of approximately $3.9 billion.
  • Adjusted EBITDA is expected to be 59 percent of projected revenue.
  • Continued demand for networking from cloud.

Headwinds

  • The Company is not readily able to provide a reconciliation of projected Adjusted EBITDA to projected net income without unreasonable effort.
  • Actual results will vary from the guidance and the variations may be material.
  • The Company undertakes no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law.
  • Enterprise demand remained soft.
  • Ongoing pandemic and macroeconomic uncertainties

Historical earnings impact

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

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

+2.9%

Avg return

Earnings day

+2.2%

Avg return

5 days after

+2.1%

Avg return

30 days after

69%

38 / 55 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
Q2 2026-8.1%-14.2%
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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