Earnings Results: Broadcom refuses to provide full-year outlook, cites limited visibility as it ‘scrubs’ backlog

by | Dec 8, 2022 | Stock Market

Broadcom Inc. late Thursday gave Wall Street analysts quarterly earnings and an outlook that topped consensus estimates, hiked its dividend and recommitted to share buybacks, yet analysts kept asking for more of a forecast from the chip and software company. Late Thursday, Broadcom
forecast revenue of about $8.9 billion for the January-ending quarter, a 15% increase from a year ago, while analysts surveyed by FactSet estimate $8.78 billion.

“Our year forecast will grow,” Hock Tan, Broadcom’s chief executive, told analysts on the call. “We’re really booked.” But that was about it. Analysts focused on the backlog of products Broadcom is grinding its way through. Given a two-year, pandemic-triggered global chip shortage that quickly flipped to signs of a glut, Tan reiterated his sales policy to analysts, saying Broadcom does not cancel orders and monitors its customers for signs of hoarding. “We haven’t changed our focus on ensuring that we do not ship products to the wrong people who just put it on the shelves,” Tan said. Broadcom would also not comment on how fast it is going through its backlog. On the call, Bernstein analyst Stacy Rasgon asked if the backlog had changed since last quarter’s $31 billion and lead times of 50 weeks. Tan refused to comment. On providing a yearly forecast, T …

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