Broadcom Inc. shares zigzagged in the extended session Thursday after the chip and software company cleared most Wall Street estimates for quarterly results and forecast a better-than-expected outlook.
Broadcom AVGO,
The company reported fiscal third-quarter net income of $1.88 billion, or $4.20 a share, compared with $688 million, or $1.45 a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation and other items, were $6.96 a share, compared with $5.40 a share in the year-ago quarter.
Revenue rose to $6.78 billion from $5.82 billion in the year-ago quarter. Analysts surveyed by FactSet had expected earnings of $6.88 a share on revenue of $6.76 billion, based on Broadcom’s forecast revenue of about $6.75 billion.
The company reported a 19% gain in chip sales to $5.02 billion from the year-ago period, and a 10% rise in infrastructure software sales to $1.76 billion.
Analysts had forecast chip sales of $5.06 billion and infrastructure software sales of $1.67 billion.
“Broadcom delivered record revenues in the third quarter, reflecting our product and technology leadership across multiple secular growth markets in cloud, 5G infrastructure, broadband, and wireless,” said Hock Tan, Broadcom president and chief executive, in a statement. “We are projecting the momentum to continue in the fourth quarter.”
Broadcom forecast revenue of about $7.35 billion for the fiscal fourth quarter, while analysts had estimated revenue of $7.23 billion.
Over the past 12 months, shares of Broadcom have gained 31%. In comparison, both the S&P 500 index SPX,
