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.
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
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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.
