Broadcom CEO Hock Tan.
Lucas Jackson | Reuters
Broadcom Apple reported its third-quarter financial results on Thursday that beat Wall Street expectations for revenue and profits.
Broadcom shares fell 5% in extended trading.
Here's how the chip conglomerate performed against LSEG's consensus estimates for the quarter ended Aug. 4:
Earnings per share: $1.24 adjusted vs. $1.20 expectedRevenue: $13.07 billion vs. $12.97 billion expected
Broadcom expects current-quarter revenue of $14 billion, or $1.36 per share, on $14.04 billion in revenue.
Broadcom reported a net loss of $1.88 billion, or 40 cents per share, compared with net income of $6.12 billion, or $1.24 per share, in the year-ago quarter.
The company said the third-quarter net loss includes a one-time tax charge of $4.5 billion related to the trading of intellectual property from one company segment to another based in the United States as part of supply chain management.
Broadcom shares have surged 75% in the past year as investors realize the company makes many of the parts needed for massive data centers or that can be used to build AI infrastructure. For example, Broadcom is working on Google’s TPU chip, which Apple has used to train some of its AI features.
Broadcom CEO Hock Tan said in a statement that the company expects to record $12 billion in sales of AI parts and custom chips in fiscal 2024.
“Broadcom’s third-quarter results reflect the continued strength of our AI-powered semiconductor solutions and VMware,” Tan said in a statement. The company reported semiconductor sales of $7.27 billion during the quarter, up 5% year over year. That was still larger than Broadcom’s infrastructure software segment, which generated $5.8 billion, mostly from the company’s acquisition of VMware.
