Broadcom Inc (NASDAQ:AVGO) reported financial results for the third quarter after the market close on Thursday. Here’s a look at the key details from the report.
Q3 Highlights: Broadcom reported third-quarter revenue of $15.95 billion, beating analyst estimates of $15.83 billion, according to Benzinga Pro. The semiconductor company reported third-quarter adjusted earnings of $1.69 per share, beating analyst estimates of $1.65 per share.
Total revenue was up 22% on a year-over-year basis, driven by continued strength in custom AI accelerators, networking and VMware.
Broadcom generated approximately $7.17 billion in cash from operations and $7.02 billion in free cash flow during the quarter. The company ended the quarter with approximately $10.72 billion in cash and cash equivalents.
“Q3 AI revenue growth accelerated to 63% year-over-year to $5.2 billion. We expect growth in AI semiconductor revenue to accelerate to $6.2 billion in Q4, delivering eleven consecutive quarters of growth, as our customers continue to strongly invest,” said Hock Tan, president and CEO of Broadcom.
What’s Next: Broadcom expects fourth-quarter revenue of approximately $17.4 billion versus estimates of $17.02 billion. The company anticipates fourth-quarter adjusted EBITDA of at least 67% of projected revenue.
Broadcom’s board approved a quarterly cash dividend of 59 cents per share, payable on Sept. 30 to shareholders of record as of Sept. 22.
Broadcom executives will further discuss the quarter on an earnings call with investors and analysts at 5 p.m. ET.
AVGO Price Action: Broadcom shares were trading approximately flat around $306 in after-hours on Thursday at the time of publication, according to Benzinga Pro.
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