Broadcom Gives Upbeat Forecast; Order Losses Hit Shares
- ‘Core’ chip unit, software sales set to grow, company projects
- Stock declines in late trading on concern about some divisions
Broadcom Inc. gave an annual sales forecast that signaled optimism that the chip industry has weathered the worst of the China-U.S. trade war, but shares dropped after the company said some units are losing orders, raising concerns about overall growth.
Sales in fiscal 2020, which ends next November, will be $25 billion, plus or minus $500 million, the company said Thursday in a statement. That projection includes revenue from its purchase of a Symantec Corp. unit, and was in line with or better than estimates from some analysts who had also factored in that new division’s contribution.
On a conference call with analysts, executives said Broadcom lost business from a big smartphone customer in one product area and warned that Wi-Fi chip sales will decline next year. The stock, which had gained on the initial report, slipped more than 2% in extended trading following the detailed outlook.