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Broadcom (AVGO) reported fiscal third quarter results that topped expectations. Adjusted earnings of $1.24 per share topped the $1.22 estimate. Revenue of $13.07 billion was slightly better than the expected $13.03 billion.
However, semiconductor solutions revenue did disappoint. Fourth quarter revenue guidance of $14.0 billion also fell short of the $14.13 billion Wall Street was expecting.
Market Domination Overtime anchors Julie Hyman and Josh Lipton break down the results in the video above.
For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.
This post was written by Stephanie Mikulich.
Broadcom's third quarter numbers hitting the wire and the shares are down 4%. That has to do with the forecast. I'm going to back into last quarter's numbers and give you the forecast first here. Fourth quarter revenue, Broadcom says, will be about $14 billion. That is short of estimates for about $14.13 billion. It seems to be that is why the stock is taking a tumble here. Third quarter adjusted earnings per share coming in at a buck 24. That's two cents ahead of estimates. And revenue a little bit above estimates at $13.07 billion. Now, the estimate there was for $13.03 billion. Specifically, semiconductor solutions revenue also missed estimates at $7.27 billion. So, it may be that too is contributing to the decline in the shares. It looks like the company has also raised its quarterly dividend by a percent to 53 cents a share. And finally, another uh thing on the forecast, it sees full year sales from AI of $12 billion.
Yeah. That's coming from uh CEO Hock Tan here in a statement saying Broadcom's third quarter results reflect continued strength in our AI semiconductor solutions and VMware. He says we expect revenue from AI to be $12 billion for fiscal year 2024, driven he says, by Ethernet networking and custom accelerators for AI data centers. You know, heading into this print, Julie, the stock, nice run. I mean, it was up about 35% this year. It was about 75% over the past 12 months. And you know, Bulls, and we've had them on the show, there are a lot of them on this name. They they like this C suite. They like the business model, the margins. As Hock Tan has pivot this company uh more to software. And of course, there's been plenty of analysts who think this has been a smart way to play that AI theme. Broadcom and part helps companies uh design custom chips for their AI initiatives. So, that's been a big reason for the enthusiasm here. But at least initially here after hours, some some disappointment.
Yeah. And just to give a little bit of perspective on that $12 billion figure, the projected sales from analysts for the entire year is uh just over $51 billion. So, $12 billion, a decent chunk of that, but definitely not even approaching half of uh full revenue for the full year. So, just to take a look at that. So, uh we'll keep watching those Broadcom shares. And we are also going to be bringing you reaction from an analyst in just a bit.
