Semiconductor and business software application maker Broadcom ( AVGO) late Thursday beat Wall Street’s targets for its financial 3rd quarter and guided greater for the existing quarter. The Broadcom profits news sent out AVGO stock greater in extended trading.
The San Jose, Calif.-based business earned a changed $5.40 a share on sales of $5.82 billion in the quarter ended Aug. 2. Analysts expected Broadcom incomes of $5.24 a share on sales of $5.76 billion. On a year-over-year basis, Broadcom incomes rose 5% while sales climbed 6%.
By sector, Broadcom’s semiconductor profits dropped 4% year over year to $4.22 billion. Its infrastructure software revenue rose 41% to $1.6 billion.
“We delivered third-quarter income leads to line with our expectations, driven by healthy need from cloud and telecom consumers, which more than offset the expected reset in cordless,” Chief Executive Hock Tan stated in the Broadcom incomes press release.
Broadcom Revenues Guidance Upbeat
He added, “Our outlook for the fourth quarter reflects a strong awaited ramp in wireless, along with the continuing surge in need for networking from cloud and telecom customers, more than offsetting expected softness in business.”
For the current quarter, Broadcom expects earnings of $6.4 billion. It did not provide a target for earnings per share. Wall Street was modeling Broadcom revenues of $5.81 a share on sales of $6.18 billion in the fiscal fourth quarter. In the year-earlier period, Broadcom revenues were $5.39 a share on sales of $5.78 billion.
AVGO Stock Rises In Late Trading
In after-hours trading on the stock exchange today, AVGO stock increased 1.4%, near 357. Throughout the regular session, ahead of the Broadcom income news, AVGO stock fell 6.1% to 352.09 in a broad market sell-off.
The Broadcom revenues report is amongst the last before the calendar third-quarter revenues season starts in mid-October.
Ambarella Delivers Mixed Quarterly Report
Late Wednesday, Ambarella ( AMBA) published better-than-expected results for its fiscal second quarter ended July 31 but offered combined guidance. The maker of video-processing chips earned an adjusted 6 cents a share on sales of $50.1 million. Experts anticipated it to lose 2 cents a share on sales of $50 million. In the year-earlier period, Ambarella earned 22 cents a share on sales of $56.4 million.
For the present quarter, the Santa Clara, Calif.-based business anticipates to make 5 cents a share on sales of $54 million, based on the midpoint of its outlook. Wall Street was modeling Ambarella profits of 4 cents a share on sales of $55.1 million.
Intel Touts New Mobile Processors
Somewhere else in the semiconductor sector, chipmaker Intel ( INTC) on Wednesday introduced its latest processors for note pad computers.
The new 11th Gen Intel Core processors with Intel Iris Xe graphics boast faster capabilities for material creation, video gaming, and office productivity.
More than 150 note pad styles based on the brand-new processors are expected from partners consisting of Acer, Asus, Dell ( DELL), HP ( HPQ), Lenovo, LG, Samsung, and others beginning this fall, Intel said.