Broadcom beats Q3 estimates, forecasts continued Q4 momentum
Broadcom on Thursday published its third-quarter financial results, beating market estimates and anticipating continued momentum into the fourth quarter.
The company's non-GAAP diluted earnings per share came to $6.96. Revenue was $6.78 billion for the third quarter, up 16% from the prior year period.
Analysts were expecting earnings of $6.88 per share on revenue of $6.76 billion.
"Broadcom delivered record revenues in the third quarter reflecting our product and technology leadership across multiple secular growth markets in the cloud, 5G infrastructure, broadband, and wireless," CEO Hock Tan said in a statement. "We are projecting the momentum to continue in the fourth quarter."
By segment, Broadcom's semiconductor business represented 74 of total sales in the third quarter. Broadcom's semiconductors are used in data centers, networking gear, broadband and wireless devices, as well as industrial. The segment brought in $5.021 billion, up 19% year-over-year.
The software unit features enterprise mainframe, cybersecurity and automation and monitoring apps. The segment grew 10 year-over-year, bringing in $1.76 billion in revenue. It now accounts for 26% of total sales.
The company also announced its board of directors had approved a quarterly cash dividend on its common stock of $3.60 per share.
Broadcom offered fourth-quarter revenue guidance of approximately $7.35 billion, an expected increase of 14% from the prior year period.
Analysts are expecting revenue of $6.75 billion.