Analog semiconductor devices maker Avago Technologies, Ltd. (AVGO) reported Wednesday a profit for the second quarter that increased 5 percent from last year, which was weighed down by a loss on extinguishment of debt.
Both adjusted earnings per share and quarterly revenues cam in above analysts' expectations. The company also provided revenue guidance for the second quarter, in line with Street view.
"During the first fiscal quarter, Wireless was much better than normal seasonality due to strength of certain OEM winners while Industrial was down as a result of inventory reductions in our channel and continued weak demand," President and CEO Hock Tan said in a statement.
The company reported net income of $125 million or $0.50 per share for the first quarter, higher than $119 million or $0.48 per share in the prior-year quarter.
Excluding items, adjusted net income for the quarter declined to $156 million or $0.62 per share from $165 million or $0.65 per share in the year-ago quarter.
On average, 13 analysts polled by Thomson Reuters expected earnings of $0.56 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter grew 2 percent to $563 million from $550 million in the same quarter last year, and topped twelve Wall Street analysts' consensus estimate of $552.04 million.
Wireless Communications revenues, which makes up about 45 percent of total revenues, grew 26 percent from last year.
Gross margin for the quarter decreased 130 basis points to 48.0 percent from last year's 49.3 percent.
"For the second quarter, we believe we will see modest revenue growth led by Wired Infrastructure as well as a stabilizing Industrial market," Tan added.
For the second quarter, the company expects a sequential improvement of 1 to 4 percent in net revenue, implying revenues between $568.63 million and $585.52 million. Street is currently looking for revenues of $580.73 million.
AVGO closed Wednesday's regular trading session at $35.90, up $0.43 or 1.21% on a volume of 2.43 million shares. However, the stock lost $0.55 or 1.53% in after-hours trading.
For comments and feedback contact: editorial@rttnews.com
Business News
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.