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Monday, February 6, 2023

Broadcom Inc. (AVGO) Stock on a Rally in Aftermarket, Here’s the Reason

Broadcom Inc. (AVGO), a company that designs, develops, and supplies various semiconductor devices, has soared 12.59% in aftermarket trading session and consequently is trading at $671.451 at the time of the writing. The bullish behavior could be seen due to the approaching earnings release date. During Monday’s regular trading session, the stock slightly declined by 0.14% and closed the day at $596.37. For the moment, let’s discuss some developments related to the company.

Q3 2021 Operational Results

In September, AVGO released the operational results for the third quarter of the fiscal year 2021. The quarter ended on the 1st of August 2021. The company generated net revenue of $6.7 billion during the quarter against $6.6 billion for the same quarter of 2020. The total operating expenses bore by the company during the three months were $2.07 billion against $2.08 billion for the same three-month period of 2020. The net income generated by the company during the period was $1.87 billion (or $4.38 per share) against $1.49 billion (or $3.46 per share) for the same period of 2020.

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AVGO Financial Metrics

Alongside the operational results, AVGO also released the financial results. The company had cash and cash equivalents of $11.1 billion on the 1st of August 2021. The total current assets on the said date were $15.6 billion, while the total assets were calculated to be $75.8 billion. The current liabilities payable by the company were $6.5 billion, while the total liabilities were $51.5 billion on the said date.

Executive Commentary

While commenting on the results, Hock Tan, President, and CEO of AVGO said that the company has delivered record revenues during the quarter which reflects the product and technological leadership of the company across multiple secular growth markets in the cloud, 5G infrastructure, broadband, and wireless. The company is projecting the momentum to continue in the fourth quarter.

Future Outlook for AVGO

During the last three months, AVGO stock has gained an increase of more than 18%. Analysts are optimistic that the stock would follow a similar trajectory in the future. Hence, potential investors should keep a close eye on the performance of AVGO stock.

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