Broadcom The company reported third-quarter results on Thursday, with sales and profits beating Wall Street expectations.
Broadcom shares fell 5% in after-hours trading.
The semiconductor manufacturing conglomerate’s results for the quarter ended Aug. 4, along with LSEG’s consensus forecasts, are as follows:
- Earnings per ShareAdjusted earnings: $1.24 (expected: $1.20)
- Revenue: $13.07 billion (expected: $12.97 billion)
Broadcom expects revenue of $14 billion for the current quarter, or $1.36 per share, compared with the forecast of $14.04 billion.
Broadcom reported a net loss of $1.88 billion, or 40 cents a share, compared with net income of $6.12 billion, or $1.24 a share, in the year-ago period.
The company said its third-quarter net loss included a one-time tax provision of $4.5 billion related to the sale and purchase of intellectual property rights from one U.S.-based division to another as part of managing its supply chain.
Broadcom shares have risen 75% in the past year as investors have come to see the company make components needed for large data centers and that can be used to build infrastructure for artificial intelligence. For example, Broadcom worked on Google’s TPU chips, which Apple used to train some of its own AI capabilities.
Broadcom CEO Hock Tan said in a statement that the company expects to record $12 billion in revenue from AI components and custom chips in fiscal 2024.
“Broadcom’s third-quarter results reflect continued strength in our AI semiconductor solutions and VMware,” Tan said in a statement. The company reported third-quarter semiconductor sales of $7.27 billion, up 5% from a year ago. That’s still larger than Broadcom’s infrastructure software division, which reported sales of $5.8 billion, much of which came from the company’s acquisition of VMware.
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