Broadcom stock slips after earnings as forecast fails to bring upside

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The chip company beat expectations on adjusted profit for latest quarter, while delivering largely in-line revenue.

Broadcom Inc. shares slipped 3% in the extended session Thursday after the chip and software company delivered a revenue forecast for the current quarter that failed to offer upside versus the consensus view.

The company reported fiscal third-quarter net income of $3.30 billion, or $7.74 a share, compared with $3.07 billion, or $7.15 a share, in the year-ago period. After adjustments, Broadcom AVGO, +3.43% earned $10.54 a share, compared with $9.73 a share in the year-ago quarter. Analysts tracked by FactSet were expecting $10.43 a share.

Revenue increased to $8.88 billion from $8.46 billion in the year-ago quarter, while analysts were modeling $8.85 billion.Chip sales rose 5% to $6.94 billion from the year-ago period, and infrastructure software sales also were up by 5%, to $1.94 billion. The FactSet consensus was for $6.97 billion in chip sales and $1.89 billion in software sales.

The latest results “were driven by demand for next-generation networking technologies as hyperscale customers scale out and network their AI clusters within data centers,” Chief Executive Hock Tan said in a statement.The company forecast fiscal fourth-quarter revenue of about $9.27 billion, in line with the FactSet consensus.Year to date, Broadcom is up 65% and the PHLX Semiconductor Index SOX, +0.

 

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