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An employee walks through the parking lot of a Broadcom office on June 3, 2021 in San Jose, California.
Justin Sullivan / Getty Images
Chips and infrastructure business actions
Broadcom
they rose Friday after the company exceeded consensus estimates and posted a fourth-quarter outlook that exceeded Wall Street expectations.
Shares fell in Thursday’s extended session, but rose early Friday, rising nearly 1% in premarket trading to $ 496.79.
Broadcom reported third-quarter net tax revenue of $ 1.888 billion, up $ 4.20 per share, compared to a net profit of $ 688 million, or $ 1.45 per share, in the period from the previous year. Adjusted for stock-based compensation, among other things, profits were $ 6.96 per share. Revenue rose 16% to $ 6.782 billion.
Analysts had modeled adjusted third-quarter earnings of $ 6.88 per share on revenue of $ 6.76 million.
“Broadcom earned record revenue in the third quarter reflecting our product and technology leadership in various markets of secular growth in cloud, 5G infrastructure, broadband and wireless connectivity,” said Broadcom chief Cxecutive Hock Tan .
Amid a global shortage of semiconductors of all kinds, leading to difficulties for carmakers, consumer electronics companies and many others, investors have hoped that chip companies would easily exceed expectations and offer high guidance. for the next quarter. Theoretically, chip companies can sell almost all the chips they are able to produce.
Broadcom said it expected fourth-quarter revenue of about $ 7.352 billion, while analysts expected revenue of $ 7.23 million.
Broadcom’s third-quarter chip business grew 19% and grossed $ 5.02 million, compared to $ 4.222 billion in the prior year period. The company’s infrastructure software segment rose 10% to $ 1.75 billion.
Shares of Sharcom were down 0.3%, to $ 491.90, during Thursday’s regular trading.
Write to Max A. Cherney at [email protected]