Investors appeared pleased with Broadcom’s earnings announced on Thursday, sending shares up about 2% in the extended session after the company’s cloud and telecom sales reported consolidation in the third quarter.
The semiconductor manufacturer selling enterprise software gave investors something to cheer for: CEO Hawk Tan expects Broadcom (ticker: AVGO) to rebound its portfolio of wireless component sales in the fourth quarter. The company makes a Wi-Fi chip for this
iPhones and other mobile devices.
Broadcom said it sold $ 6.25 billion to $ 6.55 billion in the fiscal fourth quarter and expected earnings per share were not released. Analysts reported revenue of $ 6.19 billion in the fiscal four quarter.
(Ticker: AVGO) reported fiscal third-quarter net income attributable to common stock of $ 614 million, equivalent to $ 1.45 per share, compared to a gain of $ 715 million, or $ 1.71 a year earlier. One share over a period. Earnings were, among other things, $ 5.40 per share, adjusted for amortization of assets and stock compensation related to intangible acquisitions. Analysts expected adjusted earnings of $ 5.22 per share and GAAP earnings of $ 1.11 per share.
Revenue increased to $ 5.82 billion from $ 5.52 billion a year earlier. Leading in Thursday’s results, Wall Street expects sales of $ 5.77 billion. The company reported $ 4.22 billion in semiconductor sales and $ 1.6 billion in infrastructure software revenue. Broadcom’s major cloud customers include Alphabet (GOOGL) and
(AMZN), among others, for which the company manufactures semiconductor switches for data center networking equipment.
Demand for data center hardware has increased as a result of the Kovid-19 epidemic, as millions of people have moved quickly for remote work and learning.
Broadcom stock fell 6.1% and closed at $ 352.09 during the regular session on Thursday, amid widespread weakness in tech stocks. The stock has gained 11% this year
The index rose nearly 20%.
Write Max A. Cherney at [email protected]