Broadcom CEO Hock Tan.
Lucas Jackson | Reuters
Broadcom reported third-quarter results on Thursday that exceeded Wall Street expectations for revenue and earnings.
Broadcom shares fell 5% in prolonged trading after its guidance met expectations.
Here’s how the chipmaker group performed in comparison with LSEG consensus estimates for the quarter ending August 4:
- Earnings per share: $1.24 adjusted vs. $1.20 expected
- revenue: $13.07 billion versus $12.97 billion expected
Broadcom forecasts revenue of $14 billion for the present quarter, up from $1.36 per share on an expected $14.04 billion.
Broadcom reported a net lack of $1.88 billion, or 40 cents per share, compared with year-ago quarter net income of $6.12 billion, or $1.24 per share.
The company said its third-quarter net loss included a one-time tax provision of $4.5 billion related to the trading of mental property rights from one business segment to a different based within the United States as a part of supply chain management.
Broadcom stock has risen 75% prior to now yr as investors have realized that the corporate makes several parts which might be needed for giant data centers or could be used to create artificial intelligence infrastructure. For example, Broadcom is working on Google’s TPU chip, which Apple has used to coach a few of its AI features.
Broadcom CEO Hock Tan said in an announcement that the corporate expects revenue from AI parts and custom chips to achieve $12 billion in fiscal 2024, up from the previous forecast of $11 billion.
“Broadcom’s third-quarter results reflect continued strength in our AI semiconductor solutions and VMware,” Tan said in an announcement. The company reported semiconductor revenue of $7.27 billion within the quarter, up 5% year-over-year. It’s still larger than Broadcom’s infrastructure software segment, which reported revenue of $5.8 billion, much of which got here from the corporate’s VMware acquisition.
