Broadcom Inc (NASDAQ:AVGO) reported better-than-expected results for its third quarter and issued a strong sales outlook for the fourth quarter.
The San Jose-based Broadcom, a global technology leader that designs, develops and supplies semiconductor and infrastructure software solutions, reported revenue of $5,821 million; GAAP net income of $688 million and adjusted EBITDA of $3,342 million.
GAAP diluted EPS was $1.45. Its quarterly common stock dividend proved to be $3.25 per share.
Fourth-quarter revenue guidance of $6.4 billion plus or minus $150 million – Fourth quarter Adjusted EBITDA guidance of $3,744 million plus or minus $75 million, or 58.5% of revenue at the midpoint of guidance.
The Company’s cash and cash equivalents at the end of the third fiscal quarter were $8,857 million, compared to $9,207 million at the end of the prior quarter.
During the third fiscal quarter, the Company generated $3,178 million in cash from operations and spent $105 million on capital expenditures.
According to CEO Hock Tan, “We delivered third quarter revenue results in-line with our expectations, driven by healthy demand from cloud and telecom customers, which more than offset the expected reset in wireless.
“Our outlook for the fourth quarter reflects a strong anticipated ramp in wireless, as well as the continuing surge in demand for networking from cloud and telecom customers, more than offsetting expected softness in enterprise.”
Based on current business trends and conditions, the outlook for the fourth quarter of fiscal year 2020 provides for revenue guidance of $6.4 billion plus or minus $150 million; and fourth-quarter Adjusted EBITDA of $3,744 million plus or minus $75 million, or 58.5% of revenue at the midpoint of guidance.
AVGO shares popped $14.99, or 4.3%, to $367.08