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Nov 01, 2020
Broadcom Q4 2020 Earnings Report
Broadcom's Q4 2020 financial results were announced, showing revenue growth and strong free cash flow.
Key Takeaways
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.
Broadcom
Broadcom
Broadcom Revenue by Segment
Revenue by Segment
Semiconductor Revenue
CapyFin.comInfrastructure Software Revenue
CapyFin.com 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%.
Positive Outlook
- 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.
Challenges Ahead
- 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
Revenue & Expenses
Visualization of income flow from segment revenue to net income