Broadcom's 3Q Results Beat Projections Amid Pandemic -- Earnings Review
September 03 2020 - 05:01PM
Dow Jones News
By Maria Armental
Chip maker Broadcom Inc. reported better-than-expected results
for the third quarter driven by infrastructure software revenue
gains amid the coronavirus pandemic. Here's what you need to
know.
PROFIT: Net income fell to $688 million, before dividends on
preferred stock, from $715 million a year earlier. On a per-share
basis, profit fell to $1.45 a share. Adjusted profit rose to $5.40
a share. Analysts surveyed by FactSet expected $1.09 a share, or
$5.24 a share as adjusted.
REVENUE: Revenue rose to $5.82 billion from $5.52 billion a year
earlier, driven by a 41% increase in infrastructure software
revenue that offset a 4% decline from its core semiconductor
solutions business. Analysts expected about $5.77 billion.
OUTLOOK: This quarter, Broadcom expects about $6.4 billion in
revenue, compared with analysts' projected $6.2 billion.
FCF: Broadcom generated $3.07 billion in free cash flow, a 33%
increase from the year ago. "Looking ahead, our cash flow outlook
remains robust and we plan to pay down an additional $3 billion in
debt in the fourth quarter," Chief Financial Officer Tom Krause
said in a statement.
PANDEMIC: Company officials had pointed to higher demand from
cloud, telecom and enterprise customers offset by supply-chain
constraints and a substantial reset in wireless. On Thursday, Chief
Executive Hock Tan said in a statement that the company's forecast
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."
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
September 03, 2020 16:46 ET (20:46 GMT)
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