Cloud, telecom sales drive solid Q3 for Broadcom

Demand from cloud and telecom customers more than offset the expected "reset in wireless," Broadcom said.

Broadcom on Thursday reported better-than-expected third quarter financial results, thanks to strong demand from cloud and telecom customers. 

The company's non-GAAP diluted earnings per share came to $5.40 on revenue of $5.821 billion.

Analysts were expecting earnings of $5.24 on revenue of $5.76 billion. 

"We delivered third quarter revenue results in-line with our expectations, driven by healthy demand from cloud and telecom customers, which more than offset the expected reset in wireless," CEO Hock Tan said in a statement. "Our outlook for the fourth quarter reflects a strong anticipated ramp in wireless, as well as the continuing surge in demand for networking from cloud and telecom customers, more than offsetting expected softness in enterprise."

By segment, Broadcom's semiconductor business represented 72 percent of total sales in the third quarter. The segment brought in $4.22 billion, down 4 percent year-over-year. 

The infrastructure software business grew 41 percent year-over-year, bringing in $1.6 billion in revenue. It now accounts for 28 percent of total sales. 

Additionally, the company announced, Broadcom's Board of Directors approved a quarterly cash dividend on its common stock of $3.25 per share. 

For the fourth quarter, Broadcom expects revenue of $6.4 billion, plus or minus $150 million.