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Broadcom network switches.
Broadcom
Broadcom Inc. shares rose in the extended session Thursday after the semiconductor and software company’s quarterly results and outlook topped Wall Street estimates.
Broadcom AVGO, -6.11% reported fiscal third-quarter net income of $614 million, or $1.45 a share, compared with $715 million, or $1.71 a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation and other items, were $5.40 a share, compared with $5.16 a share in the year-ago quarter.
Revenue rose to $5.82 billion from $5.52 billion in the year-ago quarter. Analysts surveyed by FactSet had expected earnings of $5.24 a share on revenue of $5.76 billion, while Broadcom had forecast revenue of $5.6 billion to $5.9 billion back in June.
“We delivered third quarter revenue results in-line with our expectations, driven by healthy demand from cloud and telecom customers, which more than offset the expected reset in wireless,” said Hock Tan, Broadcom president and chief executive, in a statement.
At last check, Broadcom shares rose 1.3% after hours, following a 6.1% decline in the regular session to close at $352.09.
A year ago Broadcom added to its relatively new foray into software by closing its acquisition of Symantec’s enterprise security business, leaving the remaining consumer business to continue as NortonLifeLock Inc. NLOK, -4.95%. That followed the company’s acquisition of IT management software company CA Inc. in 2018 and its blocked acquisition attempt for chip maker Qualcomm Inc. QCOM, -5.48%
The company reported a 4% decline in chip sales to $4.22 billion from the year-ago period, and a 41% increase in infrastructure software sales to $1.6 billion.
Analysts had forecast chip sales to $4.17 billion and infrastructure software sales to $1.6 billion.
“Our outlook for the fourth quarter reflects a strong anticipated ramp in wireless, as well as the continuing surge in demand for networking from cloud and telecom customers, more than offsetting expected softness in enterprise,” Tan said.
Broadcom expects fiscal fourth-quarter revenue of $6.25 billion to $6.55 billion, while analysts had forecast on revenue of $6.2 billion.
Over the past 12 months, shares of Broadcom have gained 28%. In comparison, the S&P 500 index SPX, -3.51% has grown 19%, the tech-heavy Nasdaq Composite Index COMP, -4.96% is up 46%, and the PHLX Semiconductor Index SOX, -5.73% is up 51% over that time.
