Semiconductor solutions group Broadcom posted revenue that fell short of analyst estimates. (REUTERS / Reuters)

Broadcom (AVGO)

Broadcom stock was trading around 2.1% lower in premarket on Friday, erasing around half of the gains made in trade on Thursday following a torrid week.

The superconductor supplier notched first-quarter adjusted earnings per share of $10.99 (£8.57), a figure which topped Wall Street estimates of $10.42.

Net revenue of $12bn beat the $11.8bn expectation. However, the semiconductor solutions group posted revenue that fell short of analyst estimates.

Read more: FTSE 100 LIVE: European markets lower ahead of US jobs data

The CEO said on its earnings call after the report that the company expects "revenue to grow over 35% year on year compared to our prior guidance for 30% annual growth."

Costco (COST)

Costco once again bulked up its bottom line on the back of gold bars and warehouse-friendly prices on everyday essentials.

The wholesale club posted adjusted earnings per share (EPS) of $3.92, soundly beating estimates of $3.62. Revenue came in at $58.4bn, up 5.7% year over year, but slightly lower than expectations of $59bn, per Bloomberg data.

Same-store sales, excluding gas and foreign exchange, jumped 5.8%.

In the US, same-store sales growth came in higher than expected at 4.8%. Canada beat estimates with 9% same-store sales growth, while international stores posted a higher-than-expected increase of 8.2%.

Read more: Stocks that are trending today

Digital sales grow more than 18% compared to a year ago, powered by demand for gold bars, silver and appliances, Costco CFO Richard Galanti told analysts on a late Thursday conference call.

Membership fees, a key revenue stream, came in at $1.1bn, up from $1bn a year ago.

Frasers (FRAS.L)

Frasers-owned luxury clothes retailer Matchesfashion is the latest chain to face administration in the UK, a move which could put around 700 jobs at risk.

The move comes just months after Frasers bought the company for £52m from private equity firm Apax in December. Reports stated that Teneo has been brought in to shepherd the process.



"Since Frasers acquired Matches, the business has consistently missed its business plan targets and, notwithstanding support from the group, has continued to make material losses," Frasers said in a statement to the stock market.

"Whilst Matches’ management team has tried to try to find a way to stabilise the business, it has become clear that too much change would be required to restructure it, and the continued funding requirements would be far in excess of amounts that the group considers to be viable."

The stock price was around 1.2% lower by mid-morning trade in London.

DS Smith (SMDS.L)

Mondi (MNDI.L) and DS Smith stock prices are going separate ways on Friday morning, with DS leading the FTSE (^FTSE) at more than 6.8% higher and Mondi down 1.9% following news of a merger between the FTSE 100-listed pair.

Packaging firm Mondi is set to acquire DS Smith — a smaller rival — in an all-share deal worth £5.1bn. The combination will create a firm worth £10bn.

Watch: Broadcom earnings: There's more room for AI growth, analyst saysAVGO) first-quarter adjusted earnings per share of $10.99 topped Wall Street estimates of $10.42. Net revenue of $11.96 billion beat the $11.76 billion expectation. However, the semiconductor solutions group posted revenue that fell short of analyst estimates.
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CFRA Research Senior Equity Analyst Angelo Zino says that in 2023, when it came to AI chips, the only two companies out there were Broadcom and Nvidia (NVDA). In 2024, Zino expects \"that same story that you saw in '23 from Broadcom continues to build here this year.\" Zino points to specifically two things driving the networking side of the business: the ethernet switcher business and the custom silicon business. Overall, \"there's a lot of growth attached to that AI story for Broadcom,\" Zino says.
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Yahoo Finance's Julie Hyman and Josh Lipton break down the results.
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For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
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Editor's note: This article was written by Stephanie Mikulich.","thumbnailUrl":"https://s.yimg.com/uu/api/res/1.2/mrgiaRGf_qWKK4IpKwWYPA--~B/aD0yODEwO3c9NTAwMDthcHBpZD15dGFjaHlvbg--/https://s.yimg.com/os/creatr-uploaded-images/2024-03/56f420f0-dcc2-11ee-bfe3-45e63d702683","duration":"PT6M20S","contentUrl":"https://video.media.yql.yahoo.com/v1/video/sapi/hlsstreams/41138d60-92e7-3b27-9397-6d5d7131367e.m3u8?site=finance®ion=GB&lang=en-GB&devtype=desktop&src=sapi","embedUrl":"https://uk.finance.yahoo.com/video/broadcom-earnings-theres-more-room-220532600.html?format=embed","identifier":"41138d60-92e7-3b27-9397-6d5d7131367e"}

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