$AVGO - BROADCOM 🔄
Broadcom is now reporting its third-quarter earnings, and these are the results:
Earnings per share of $1.24 - beat expectations of $1.21 earnings.
Revenue of $13.1 billion - which beat expectations of $12.96 billion.
Broadcom CEO Hock Tan, who has led the company to exceptional achievements since 2006, spoke after the earnings report; these are his words:
Broadcom's third-quarter results reflect our continued strength in our AI semiconductor solutions and VMware. We project AI revenue to be $12 billion in fiscal year 2024, driven by Ethernet networking and custom accelerators for AI data centers.
He further added: "VMware's transformation continues to progress well! The integration of VMware brings adjusted EBITDA margins to 64% of revenue towards the exit of fiscal year 2024."
"Revenue grew 47% year-over-year to $13.1 billion, including the contribution from VMware, and increased 4% year-over-year, excluding VMware, adjusted EBITDA grew 42% year-over-year to $8.2 billion."
"Free cash flow, excluding restructuring and integration in the quarter, was $5.3 billion, an increase of 14% compared to the same quarter last year."
Investors were not impressed, and Broadcom is down 5% after the report, despite beating analysts' estimates!
Why did the stock beat estimates and still drop?! "In a nutshell, I'd characterize it as simply not enough," so claims analyst Jordan Klein from Mizuho desk regarding Broadcom's third-quarter earnings,
"They beat revenue this quarter, but they beat it because of their software business; it wasn't from their core business - semiconductors."
Search the channel for the word "Broadcom" and you can read our comprehensive and enriching review of its operations and the company's interesting aggressive strategy: acquiring companies to help increase its revenue!