Latest news with #HewlettPackard
Yahoo
11 hours ago
- Business
- Yahoo
Broadcom (NASDAQ:AVGO) Reports Q1 Results
Fabless chip and software maker Broadcom (NASDAQ:AVGO) met Wall Street's revenue expectations in Q1 CY2025, with sales up 20.2% year on year to $15 billion. The company expects next quarter's revenue to be around $15.8 billion, close to analysts' estimates. Its non-GAAP profit of $1.58 per share was in line with analysts' consensus estimates. Is now the time to buy Broadcom? Find out in our full research report. Revenue: $15 billion vs analyst estimates of $15.02 billion (20.2% year-on-year growth, in line) Adjusted EPS: $1.58 vs analyst estimates of $1.57 (in line) Adjusted EBITDA: $10 billion vs analyst estimates of $9.93 billion (66.7% margin, 0.7% beat) Revenue Guidance for Q2 CY2025 is $15.8 billion at the midpoint, roughly in line with what analysts were expecting Operating Margin: 38.8%, up from 23.7% in the same quarter last year Free Cash Flow Margin: 42.7%, up from 35.6% in the same quarter last year Market Capitalization: $1.23 trillion "Broadcom achieved record second quarter revenue on continued momentum in AI semiconductor solutions and VMware. Q2 AI revenue grew 46% year-over-year to over $4.4 billion driven by robust demand for AI networking," said Hock Tan, President and CEO of Originally the semiconductor division of Hewlett Packard, Broadcom (NASDAQ:AVGO) is a semiconductor conglomerate spanning wireless communications, networking, and data storage as well as infrastructure software focused on mainframes and cybersecurity. Reviewing a company's long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, Broadcom grew its sales at an incredible 20% compounded annual growth rate. Its growth surpassed the average semiconductor company and shows its offerings resonate with customers, a great starting point for our analysis. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions (which can sometimes offer opportune times to buy). We at StockStory place the most emphasis on long-term growth, but within semiconductors, a half-decade historical view may miss new demand cycles or industry trends like AI. Broadcom's annualized revenue growth of 27.6% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. This quarter, Broadcom's year-on-year revenue growth of 20.2% was excellent, and its $15 billion of revenue was in line with Wall Street's estimates. Company management is currently guiding for a 20.9% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 17.3% over the next 12 months, a deceleration versus the last two years. We still think its growth trajectory is attractive given its scale and indicates the market is baking in success for its products and services. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Days Inventory Outstanding (DIO) is an important metric for chipmakers, as it reflects a business' capital intensity and the cyclical nature of semiconductor supply and demand. In a tight supply environment, inventories tend to be stable, allowing chipmakers to exert pricing power. Steadily increasing DIO can be a warning sign that demand is weak, and if inventories continue to rise, the company may have to downsize production. This quarter, Broadcom's DIO came in at NaN, This was an in-line quarter, with revenue and EPS meeting expectations. Looking ahead, guidance for next quarter's revenue was also in line. The stock traded down 1.8% to $255.31 immediately after reporting. Should you buy the stock or not? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
2 days ago
- Business
- Globe and Mail
Another drift higher for Wall Street pushes US stocks even closer to their records
NEW YORK (AP) — Another drift higher for U.S. stocks on Wednesday is pushing Wall Street even closer to its record following its big recent rally. The S&P 500 was up 0.3% in early trading and pulled within 2.5% of its all-time high. The Dow Jones Industrial Average was up 94 points, or 0.2%, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 0.3% higher. Hewlett Packard Enterprise helped lead the way and rose 4.1% after delivering a stronger profit for the latest quarter than analysts expected. Wells Fargo rose 2.8% after the Federal Reserve on Tuesday lifted restrictions placed on the bank in 2018 for having a toxic sales and banking culture. Wells Fargo has spent the better part of a decade trying to restore its image with the public and convince policymakers that it had changed its ways. The action was stronger in the bond market, where Treasury yields fell after a report suggested U.S. employers outside of the government hired far fewer workers last month than economists expected. The report from ADP said private employers hired just 37,000 more workers than they fired, down from the prior month's 60,000. That could bode ill for Friday's more comprehensive jobs report coming from the U.S. Labor Department, which is one of Wall Street's most anticipated data releases each month. So far, the U.S. job market has remained remarkably resilient despite years of high inflation and now the threat of President Donald Trump's high tariffs. But weakness there could undermine the rest of the economy. To be sure, ADP's report historically has not been a perfect predictor of what the U.S. Labor Department's report will say. 'Whether this report is accurate or not, traders and investors will read today's number as a dark result for trading today,' according to Carl Weinberg, chief economist at High Frequency Economics. 'This may be the tip of an iceberg, but it also could be a false start.' Following the report, traders built up expectations that the Federal Reserve will need to cut interest rates later this year in order to prop up the economy, which in turn caused the fall for Treasury yields. The weaker-than-expected report also pushed Trump to call on Fed Chair Jerome Powell to deliver cuts to rates more quickly. ''Too Late' Powell must now LOWER THE RATE,' Trump said on his Truth Social platform. 'He is unbelievable!!! Europe has lowered NINE TIMES!' The Fed, though, has yet to cut interest rates this year after slashing them through the end of last year. Part of the reason is that the Fed wants to see how much Trump's tariffs will hurt the economy and raise inflation. While lower interest rates could boost the economy, they could also give inflation more fuel. Longer-term Treasury yields have also been rising in recent weeks because of reasons outside the Fed's control. Investors have been demanding the U.S. government pay more in interest to borrow because of worries about whether it's set to add trillions of dollars to its debt through tax cuts under discussion on Capitol Hill. On Wall Street, CrowdStrike, the cybersecurity company that Delta Air Lines has sued for a technology outage last summer, fell 7.9% despite reporting a stronger profit for the latest quarter than analysts expected. Its revenue fell just short of Wall Street's target, as did its forecast for revenue in the current quarter. In stock markets abroad, indexes rose across much of Europe and Asia as the wait continued for more updates on trade talks that could convince Trump to lower his tariffs. Hopes for such deals have been a big reason U.S. stocks have roared back after falling roughly 20% below their record two months ago. But nothing is assured, and Trump early Wednesday said of China's leader Xi Jinping, 'I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!' The European Union's top trade negotiator, Maroš Šefčovič, met Wednesday with his American counterpart, U.S. Trade Representative Jamieson Greer, on the sidelines of a meeting of the Organisation for Economic Cooperation and Development. South Korea's Kospi led Wednesday's global market gains and jumped 2.7% after the liberal opposition candidate Lee Jae-myung was elected president. Lee's victory caps months of political turmoil triggered by the stunning but brief imposition of martial law by the now-ousted conservative leader Yoon Suk Yeol. Top priorities will include government spending and trade negotiations with the United States. In the bond market, the yield on the 10-year Treasury fell to 4.40% from 4.46% late Tuesday. The two-year Treasury yield, which more closely tracks traders' expectations for what the Fed will do with overnight interest rates, eased to 3.91% from 3.96%.
Free Malaysia Today
2 days ago
- Business
- Free Malaysia Today
US stock futures edge up as tech shares find support
May was the best month for the S&P 500 and the tech-heavy Nasdaq since November 2023, thanks to a softening of Donald Trump's harsh trade stance. (EPA Images pic) NEW YORK : US stock index futures nudged higher today as Hewlett-Packard Enterprise's (HPE) results fanned artificial-intelligence (AI) optimism and some tech shares gained, while investors awaited fresh data to better gauge the economic fallout of President Donald Trump's tariffs. Shares of HPE rose 5.7% in premarket trading as demand for the company's AI servers and hybrid cloud segment helped it beat estimates for second-quarter revenue and profit. AI chip leader Nvidia edged up 0.7%, extending gains from earlier this week. Other chipmakers, including Broadcom and Advanced Micro Devices, also moved higher. A gauge of global stocks touched record highs despite uncertainty around US trade policies. Washington doubled tariffs on imported steel and aluminium to 50% today, the same day by which Trump had wanted trading partners to make their best offers to avoid other punishing import levies from taking effect in early July. Investor focus is squarely on tariff negotiations between Washington and its trading partners, with Trump and Chinese leader Xi Jinping expected to speak sometime this week as tensions between the world's top two economies simmer. 'All eyes are on China given it is currently the biggest loser from Trump's new trade policy, and it looks like we're still some way off from a deal between the two countries,' said Russ Mould, investment director at AJ Bell. At 7.10am, Dow E-minis were up 65 points, or 0.15%, S&P 500 E-minis were up 11 points, or 0.18%, and Nasdaq 100 E-minis were up 37.5 points, or 0.17%. May was the best month for the S&P 500 index and the tech-heavy Nasdaq since November 2023, thanks to a softening of Trump's harsh trade stance. With fresh tariff announcements in place, the S&P 500 remains about 3% away from its record highs touched in February. Barclays joined a slew of other brokerages in raising its year-end price target for the S&P 500, pointing to easing trade uncertainty and expectations of normalized earnings growth in 2026. Data releases scheduled for today include ADP National Employment numbers for May as well as S&P Global and ISM's services sector activity readings for May. Ahead of a US central bank meeting next week, monthly jobs data due on Friday will likely offer more signs on how trade uncertainty is affecting the US economy. Among other early movers, Wells Fargo shares rose 2.9% after the US Federal Reserve removed a US$1.95 trillion asset cap imposed in 2018 following years of missteps. Shares of cybersecurity firm CrowdStrike fell 7.2% after it forecast quarterly revenue below estimates. Apple nudged 0.6% lower after brokerage Needham downgraded the iPhone maker to 'hold' from 'buy'. Dollar Tree fell 3.8% after the discount store operator forecast second-quarter adjusted profit would be as much as 50% lower than a year ago due to tariff-driven volatility.
CNA
2 days ago
- Business
- CNA
Hewlett Packard beats Q2 results estimates on AI demand; records $1.36 billion charge
Hewlett Packard Enterprise beat Wall Street's second-quarter revenue and profit estimates on Tuesday, driven by demand for its artificial-intelligence servers and hybrid cloud segment. Shares of the server-maker, which also recorded an impairment charge of $1.36 billion in the reported quarter, rose 3.2 per cent in extended trading. The company has benefited from a surge in spending on advanced data center architecture, designed to support the complex processing needs of generative AI. The GenAI boom has bumped up demand for Hewlett Packard's AI-optimized servers, which are powered by Nvidia processors and can run complex applications. For the quarter ended April 30, the company reported revenue of $7.63 billion, ahead of analysts' average estimate of $7.45 billion, according to data compiled by LSEG. In the quarter, Hewlett Packard addressed the execution challenges that it experienced in the prior quarter, which enabled it to drive improved margin performance in the server business, CFO Marie Myers said during a post-earnings call. The company did not see a significant benefit from tariff-related demand pull-forward, she said. Adjusted profit per share for the second quarter was 38 cents, beating an estimate of 32 cents per share. Server revenue was up 5.7 per cent to $4.06 billion and revenue for the hybrid cloud segment grew 13 per cent to $1.45 billion. Hewlett Packard tightened its annual revenue forecast growth to be up 7 per cent to 9 per cent, compared to its prior forecast of 7 per cent to 11 per cent growth. "We continue to navigate a complex macroeconomic and geopolitical landscape and remain prepared to take additional action in the back half of the year to deliver against our fiscal 2025 outlook," Myers said. The company forecast third-quarter revenue between $8.2 billion and $8.5 billion, compared to an estimate of $8.17 billion.
Mint
2 days ago
- Business
- Mint
Hewlett Packard beats Q2 results estimates on AI demand; records $1.36 billion charge
(Reuters) -Hewlett Packard Enterprise beat Wall Street's second-quarter revenue and profit estimates on Tuesday, driven by demand for its artificial-intelligence servers and hybrid cloud segment. Shares of the server-maker, which also recorded an impairment charge of $1.36 billion in the reported quarter, rose 3.2% in extended trading. The company has benefited from a surge in spending on advanced data center architecture, designed to support the complex processing needs of generative AI. The GenAI boom has bumped up demand for Hewlett Packard's AI-optimized servers, which are powered by Nvidia processors and can run complex applications. For the quarter ended April 30, the company reported revenue of $7.63 billion, ahead of analysts' average estimate of $7.45 billion, according to data compiled by LSEG. In the quarter, Hewlett Packard addressed the execution challenges that it experienced in the prior quarter, which enabled it to drive improved margin performance in the server business, CFO Marie Myers said during a post-earnings call. The company did not see a significant benefit from tariff-related demand pull-forward, she said. Adjusted profit per share for the second quarter was 38 cents, beating an estimate of 32 cents per share. Server revenue was up 5.7% to $4.06 billion and revenue for the hybrid cloud segment grew 13% to $1.45 billion. Hewlett Packard tightened its annual revenue forecast growth to be up 7% to 9%, compared to its prior forecast of 7% to 11% growth. "We continue to navigate a complex macroeconomic and geopolitical landscape and remain prepared to take additional action in the back half of the year to deliver against our fiscal 2025 outlook," Myers said. The company forecast third-quarter revenue between $8.2 billion and $8.5 billion, compared to an estimate of $8.17 billion. (Reporting by Juby Babu in Mexico City; Editing by Pooja Desai)
