(Reuters) – Broadcom Inc on Thursday cut its full-year revenue forecast, blaming a broad-based slowdown in demand due to continued geopolitical uncertainties and impact of export restrictions on Huawei Technologies Co Ltd.
Shares of the San Jose, California-based company fell 7.1% to $261.6 in extended trading.
“Our customers are actively reducing their inventory levels, and we are taking a conservative stance for the rest of the year,” Chief Executive Officer Hock Tan said in a statement.
The company, known for communications chips and powers Wi-Fi, Bluetooth and GPS connectivity in smartphones, lowered its full-year revenue forecast by $2 billion to $22.50 billion.
Shares of Broadcom have been under pressure after the U.S. government put Huawei on a trade blacklist last month.
Net revenue rose to $5.52 billion in the second quarter ended May 5, from $5.01 billion a year earlier, but missed analysts’ estimates of $5.68 billion, according to IBES data from Refinitiv.
Net income attributable to ordinary shares fell to $691 million, or $1.64 per share, in the quarter, from $3.72 billion, or $8.33 per share, a year earlier. (reut.rs/2F8Mgyt)
Excluding items, the company earned $5.21 per share, beating analysts’ estimates of $5.16 per share.
Source: Read Full Article