Broadcom CEO Hock Tan.
Lucas Jackson | Reuters
Broadcom Fiscal third-quarter results reported Thursday beat Wall Street expectations for revenue and profit.
Broadcom shares fell 5% in after-hours trading.
Here’s how the chipmaking group performed against the London Stock Exchange Group’s (LSEG) consensus forecast for the quarter ended August 4:
- Earnings per share: Adjusted $1.24, expected $1.20
- income: US$13.07 billion, expected US$12.97 billion
Broadcom expects current quarter revenue of $14 billion, compared with expectations of $1.36 per share and expectations of $14.04 billion.
Broadcom reported a net loss of $1.88 billion, or 40 cents a share, compared with a net profit of $6.12 billion, or $1.24 a share, a year earlier.
The company said its net loss in the third quarter included a $4.5 billion one-time tax provision related to intellectual property transactions from one corporate segment to another based in the United States as part of supply chain management.
Broadcom’s stock price has risen 75% in the past year as investors began to realize that the company makes a variety of parts needed for big data centers and may be used to create artificial intelligence infrastructure. For example, Broadcom uses Google’s TPU chip, which Apple has also used train some of its artificial intelligence functions.
Broadcom CEO Hock Tan said in a statement that the company expects sales of artificial intelligence parts and customized chips to reach $12 billion in fiscal 2024.
“Broadcom’s third-quarter results reflect the continued strength of our artificial intelligence semiconductor solutions and VMware,” Tan said in a statement. The company reported semiconductor sales of $7.27 billion in the quarter, up 5% year-over-year. It’s still larger than Broadcom’s infrastructure software unit, which has $5.8 billion in sales, most of which comes from the company’s Acquisition of VMware.
