Broadcom Stock Drops On Q3 Earnings: The Details

Broadcom Inc AVGO reported third-quarter financial results after the bell. Here's a rundown of the report.

Q3 Revenue: $8.88 billion beat estimates of $8.86 billion

Q3 EPS: $10.54 beat estimates of $10.42

Revenues climbed 5% year-over-year, driven by demand for next gen networking tech. The company said hyperscale customers scaled out and networked their AI clusters within data centers.

Broadcom ended the quarter with $12.055 billion in cash and equivalents. The company's board also approved a quarterly cash dividend of $4.60 per share. 

Outlook: Broadcom anticipates fourth-quarter revenue of approximately $9.27 billion versus estimates of $9.28 billion. Adjusted EBITDA is expected to be approximately 65% of forecasted quarterly revenue. 

"Our fourth quarter outlook projects year-over-year growth, reflecting continued leadership in networking for generative AI," said Hock Tan, president and CEO of Broadcom.

Management will discuss these results on a conference call that kicks off at 5 p.m. ET.

See Also: Lululemon Q3 Earnings Rundown: EPS Beat, Comparable Sales Up 11%, Strong Guidance

AVGO Price Action: Broadcom shares were down 2.08% at $903.63 at the time of writing, according to Benzinga Pro.

Photo: Florian Knodt from Flickr.