When Broadcom Inc. (NASDAQ: AVGO) released fiscal third-quarter financial results after markets closed Thursday, the semiconductor maker reported $5.40 in earnings per share (EPS) and $5.82 billion in revenue. That compared with consensus estimates of $5.24 in EPS and revenue of $5.76 billion. In the same period last year, the company reported EPS of $5.16 on $5.51 billion in revenue.
Management noted that Broadcom delivered third-quarter revenue results in-line with its expectations, driven by healthy demand from cloud and telecom customers that more than offset the expected reset in wireless.
During the most recent quarter, total revenue increased 6% year over year. This consisted of Semiconductor Solutions revenues that declined 4% year over year to $4.22 billion and Infrastructure Software revenues that increased 41% to $1.14 billion.
At the end of the quarter, cash and cash equivalents totaled $8.86 billion, down from $9.21 billion at the end of the prior quarter.
The board of directors approved a quarterly cash dividend of $3.25 per share that is payable on September 30 stockholders of record at the close of business on September 22.
Looking ahead to the fiscal fourth quarter, the company expects to see net revenues of $6.4 billion, give or take $150 million, and adjusted EBITDA of $3.74 billion, plus or minus $75 million. Consensus estimates call for $5.24 in EPS and $5.76 billion in revenue for the quarter.
Hock Tan, president and CEO of Broadcom, said that the outlook for the fourth quarter reflects a strong anticipated ramp in wireless, along with the continuing surge in demand for networking from cloud and telecom.
Broadcom stock closed Thursday at $352.09, with a 52-week range of $155.67 to $378.96. The consensus analyst price target is $357.67. Following the announcement, the stock was up 2% at $359.00 in the after-hours session.
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