Broadcom Profits Slip as Acquisition Costs Overshadow AI Growth — WSJ

/ / Technology /

By Asa Fitch Broadcoms latest quarterly profits missed Wall Street forecasts on deal-related costs as strong demand for AI-related products boosted semiconductor sales. The chip and software company said sales for its fiscal first quarter were $11.96 billion, up by 34% on a year before because of its acquisition of software-maker VMware. The company made $1.33 billion in net profit in the quarter, down from $3.78 billion the same period a year earlier and behind expectations in a FactSet survey of analysts. Its stock fell 3% in after-hours trading. Sales would have risen by only 11% for the quarter =excluding the VMware acquisition, CFO Kirsten Spears said in a statement. The rise was driven by Broadcoms software segment and by demand for its networking chips, which help move data around in AI computation, CEO Hock Tan said. The company also helps big cloud-computing companies like Google to develop homegrown AI […]

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MongoDB Stock Tumbles on Disappointing Outlook. Other Cloud Stocks Are Falling in Response. — Barrons.com

/ / Technology /

By Eric J. Savitz MongoDB shares are down sharply in late trading after the provider of cloud-based database software provided disappointing guidance for both its April quarter and January 2025 fiscal year. For the January quarter, MongoDB reported revenue of $458 million, up 27% from a year ago and ahead of Wall Street’s consensus as tracked by FactSet of $437 million. Adjusted profits of 86 cents a share were also above the Street’s consensus of 46 cents. But the guidance was light. For the April quarter, MongoDB projects revenue of between $436 million and $440 million, with adjusted profits of 34 to 39 cents a share; The Street consensus estimates had called for $452 million in revenue and profits of 62 cents. For the January 2025 fiscal year, MongoDB sees revenue of between $1.9 billion and $1.93 billion, with profits of between $2.27 and $2.49 a share on an adjusted

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DocuSign 4Q Revenue Tops Estimates As Turnaround Efforts Pay Off

/ / Technology /

By Denny Jacob DocuSign posted better-than-expected revenue in its latest quarter, further proof that prior turnaround efforts are resulting in a company on stronger footing. The e-signature company logged net income of $27.2 million, or 13 cents a share, for the fourth quarter ended Jan. 31, up from $4.9 million, or 2 cents a share, a year earlier. Adjusted earnings were 76 cents a share, above analysts’ estimates of 65 cents a share. Revenue climbed 8% to $712.4 million from $659.6 million a year earlier. Analysts polled by FactSet expected $698.3 million. Free cash flow in the quarter was $248.6 million compared to $113 million in the same period a year earlier. For the current quarter, DocuSign forecast revenue between $704 million and $708 million. Analysts polled by FactSet expected $700.5 million. For fiscal 2025, the San Francisco-based company guided for revenue in the range of $2.92 billion and $2.93

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Broadcom Q1 Non-GAAP Earnings, Revenue Rise; Maintains 2024 Revenue Outlook

/ / Technology /

Broadcom (NASDAQ:AVGO) reported Q1 non-GAAP earnings late Thursday of $10.99 per diluted share, up from $10.33 a year earlier. Analysts polled by Capital IQ expected $10.42. Revenue for the quarter ended Feb. 4 was $11.96 billion, up from $8.92 billion a year earlier. Analysts expected $11.72 billion. For fiscal 2024, the company reiterated its forecast projecting around $50 billion in revenue. Analysts are looking for revenue of $50.01 billion this year. Broadcom said it maintained its quarterly dividend at $5.25 per share, payable March 29 to investors of record on March 21.

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Marvell Technology Gives a Weak Outlook. The Chip Stock Tanks. — Barrons.com

/ / Technology /

By Tae Kim Marvell Technology (MRVL.US) posted earnings results and gave financial guidance below Wall Street expectations, driving the stock lower in post market trading. The semiconductor firm reported adjusted earnings per share of 46 cents for the January quarter, matching the consensus estimate of 46 cents among Wall Street analysts tracked by FactSet. Revenue came in at $1.43 billion, which was about in line with analysts’ expectations of $1.42 billion. The company’s shares fell 10.2% to $76.41 in post-market trading following the release. Management’s financial outlook was disappointing. Marvell forecast a range of potential revenue for the current quarter with a midpoint of $1.15 billion, compared with the consensus view that revenue will be $1.38 billion. “While we are forecasting soft demand impacting consumer, carrier infrastructure, and enterprise networking in the near term, we expect revenue declines in these end markets to be behind us after the first quarter,

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Costco Beats on Earnings, but Revenue Falls Short. — Barrons.com

/ / Consumer Discretionary /

By Sabrina Escobar Costco (COST.US) topped earnings expectations, but the stock fell in after-hour trading Thursday following the company’s rare revenue miss. The company’s fiscal second-quarter revenue of $58.4 billion missed analyst projections for $59.1 billion. Total company same-store sales, adjusted for currency and gasoline price fluctuations, rose 5.8% year-over-year. Analysts had predicted they would tick up 5%. Earnings of $3.92 a share were higher than estimates for $3.63 a share. Net income got a boost from a $94 million tax benefit from the deductibility of the $15-per-share special dividend announced last year. Costco’s stock fell 4.6% to $749.63 Thursday afternoon. The stock has gained 19% this year, while the S&P 500 is up 8%. The company — and its stock — have been reliable outperformers over the past couple of quarters, with strong financial results pushing shares to historic highs. And indeed, Costco has given investors a lot to

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Costco Not Raising Membership Fees Yet

/ / Consumer Discretionary /

Replying to the first question on an earnings call, outgoing CFO Richard Galanti tells analysts that the retailer isn’t prepared to announce an increase in membership fees. Investors have been watching whether Costco would boost its fees in a bid to capture additional revenue. Renewal rates increased in 2Q from 1Q and overall membership grew year over year. Walmart’s Sam’s Club raised its membership fees in 2022. “We will at some point,” says Galanti, who will be replaced by former Kroger CFO Gary Millerchip on March 15. “I’ve been joking with Gary, it will be on his watch, not mine.”

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Boeing to Tie More of Employees’ Pay to Safety — WSJ

/ / Industrials /

By Sharon Terlep Under fire for production snafus, Boeing is overhauling how it pays employee bonuses to emphasize quality and safety over meeting financial targets. The move, one of many to address quality issues following the door-plug blowout on an Alaska Air flight, applies to Boeing’s nonunion workforce of more than 100,000 employees, managers and executives, according to a memo sent to employees and reviewed by The Wall Street Journal. The biggest shift will be in the company’s commercial unit, its largest, where safety and quality metrics will now account for 60% of annual bonuses. Previously, financial incentives comprised 75% of the annual award, while the remaining 25% was tied to operational objectives including quality and safety. Metrics that will determine the rewards include employee safety, work done out of sequence on the assembly line and so-called rework required to fix problems. Regulators have criticized the company’s quality controls and

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DocuSign(NASDAQ:DOCU) Q4 2024 Earnings Conference

/ / Technology /

The following is a summary of the DocuSign, Inc. (DOCU) Q4 2024 Earnings Call Transcript: Financial Performance: DocuSign reported Q4 revenues of $712 million, an increase of 8% year-over-year and full year revenue of $2.8 billion, marking a 10% growth year-over-year. Non-GAAP operating margin in Q4 improved to 25%, and the full year margin also improved significantly to 26% from 21% in fiscal 2023. The free cash flow for the year more than doubled to approximately $900 million. Q4 non-GAAP operating income was $178 million, marking a 15% year-over-year increase, and full fiscal year non-GAAP operating income reached $711 million, a 38% increase year-over-year. With a positive GAAP net income for the year, the GAAP diluted EPS improved to $0.36, from a negative $0.49 in the prior year. The company ended the fiscal year with approximately $1.2 billion in cash and cash equivalents. Business Progress: DocuSign made strides in product

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Warner Bros. Discovery In Talks for More Streaming Bundles

/ / Consumer Discretionary /

Warner Bros. Discovery is talking with potential partners about new streaming bundles. JB Perrette, CEO of global streaming and games, says at the Morgan Stanley Technology, Media & Telecom Conference that the company is “in conversation with others” about making a similar offering to its bundle with Verizon and Netflix. Warner Bros. Discovery executives have previously hinted at a big role for streaming bundles in the future, potentially with intermediaries such as Roku or directly with other services. “We think there’s more opportunity, particularly in that lower-priced SKU, to drive penetration, Perrette says.

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