Broadcom shares slide on narrower Q3 beat

Broadcom beats consensus on top and bottom lines for fiscal Q3.
AVGO stock declines slightly near 2% range in the immediate aftermath.
Q4 revenue guidance rises to $17.4 billion.

Clay Webster FXStreet

The market initially sold off Broadcom (AVGO) at a moderate pace after the semiconductor giant reported a narrow beat on fiscal third-quarter results. The company's share price initially slid from the Thursday close near $306 to $298 at the time of writing before beginning a tepid recovery.

Broadcom earned $1.69 in adjusted earnings per share (EPS) on revenue of $15.95 billion. Sales rose 22% on an annual basis, down from the 47% figure seen in the same quarter a year ago.

Wall Street had expected $1.66 in adjusted EPS on $15.82 billion in revenue.

Broadcom earned $7.02 billion in free cash flow during Q3, which amounts to 44% of revenue. Additionally, Broadcom projects $17.4 billion in sales during Q4, better than the $17.1 billion consensus.

In separate earnings announcements, DocuSign (DOCU) surged over 10% after overcoming the quarterly consensus, while Lululemon (LULU) plunged about 14% on its revenue miss.

AVGO 5-minute stock chart

Author

Clay Webster

FXStreet

Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.

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